AFRICA INDUSTRIAL BRIEFS

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Researched by Industrial Info Resources

POWER

Eskom's Mozambique Power Purchase Prospects

South Africa's state utility Eskom could buy power from four new projects in Mozambique with a total capacity of 4,650 megawatts (MW). An 850-MW hydropower plant on Cahora Bassa's dam and a 1,300-MW hydropower plant downstream of the Zambezi are under consideration. A gas-fed plant near the Temane gas field in Inhambane Province could output 1,000 MW and could be commissioned in 2011. A 1,500-MW coal-fired plant in Moatize on the Tete coalfield could complete the new output. Mozambique would raise project finance, and Eskom would negotiate long-term power purchase agreements.

METALS & MINERALS

Arcelor Mittal's Ore Mining Hub

The world's largest steelmaker Arcelor Mittal is building a spread of iron ore stakes in West Africa. "The company is on the verge of creating its own iron ore mining hub in the region," Mineweb states. Optimistic about global steel consumption, the company plans to extract 25 million tons per annum (TPA) of ore in Mauritania to feed its European mills. The El Agareb resource contains more than 1 billion tons of rich grade magnetite. In February 2007, the company announced a $2.2 billion investment in ore mining in Senegal and increased its investment in Liberian iron ore mining to $1.5 billion. Arcellor Mittal now controls the sector in that country. The company plans to source 64% of its ore requirements for steel making globally by 2010 to reduce dependence on major suppliers.

Areva Secures Niger Uranium Supply

The government of Niger has signed an agreement with France's Areva nuclear power group to supply uranium in return for social development and services backing. In the terms of agreement for the purchase of uranium from the Cominak and Somair mines over the next two years is a provision for a price increase of 50% reflecting the recent rise in long-term prices. The go-ahead has also been given for Areva to begin mining at the Imouraren deposit and extend exploration. The 5,000-TPA mine could have $1.4 billion invested and secure supplies in the long-term for the French company.

Botswana's Uranium Prospects Visible

Botswana's first uranium mine is in prospect after the announcement by A-Cap Resources of the initial Inferred Mineral Resource at the Mokobaesi and Kraken sites of 20 million pounds of uranium. Drilling on targets will begin this month in an area where bright yellow uranium oxide is visible and mineralization is of considerable thickness. A-Cap has another prospecting license over 4,500 square kilometers in the country's Central Territory where uranium deposits have been discovered in Serule.

Study Begins on Botswana CTL Project

CIC Energy (Toronto) has started feasibility and market studies on a coal-to-liquids project in Botswana at the company's Mmamabula coal project. A mine and power station are planned after studies produced positive results from an internal scope. Jacobs Engineering will conduct a feasibility study on production of synthesis gas from coal for conversion to downstream chemicals and fuels. Wood Mackenzie is conducting an in-depth market study for the project on downstream products. The $6.3 billion Mmamabula energy project includes a 4,800-MW coal-fed power station backed by Eskom and Botswana's power utility.

Funding to Come for South Africa's Coal Bed Methane Project

Observers of the South African energy sector will be watching the progress of the recently announced venture between the government's Central Energy Fund with NT Energy Africa Group to explore and develop coal-bed methane deposits as an energy source. The project has been given a $10 billion investment tag over the next three years, but no further funding details have been revealed. Several key members of President Mbeki's inner government circle are directors of Bataung Strategic Investments, a part of NT Energy. Political shifts and a reinspection of the country's energy policy could affect the project's profile. NT Energy claims to have drilled 350 coal intercepts over 50,000 hectares in exploring new prospects.