R/€ = 15.26Change: -0.01
R/$ = 14.41Change: -0.03
Au 1057.95 $/ozChange: 0.07
Pt 835.50 $/ozChange: 0.00
Note: Search is limited to the most recent 250 articles. Set date range to access earlier articles.
Where? With... When?

And must exclude these words...
Close Main Search
Close Main Login
My Profile News Alerts Newsletters Logout Close Main Profile
Agriculture   Automotive   Chemicals   Competition Policy   Construction   Defence   Economy   Electricity   Energy   Environment   ICT   Metals   Mining   Science and Technology   Services   Trade   Transport & Logistics   Water  
What's On Press Office Tenders Suppliers Directory Research Jobs Announcements Letters Contact Us
RSS Feed
Article   Comments   Other News   Research   Magazine  
Jun 21, 2012

Some power to flow to Southern African grid from Benga, Rio says

Construction|Port|Building|CoAL|Design|Flow|Mining|Modular|PROJECT|Rio Tinto|Rio Tinto Coal Mozambique|Riversdale Mining|Water|Mozambique|Benga Mine|Benga Power Plant|MW Facility|Port Of Beira|Coal Processing Plant|Equipment|Flow|Mining Equipment|Power Generation|Power-generation|Service|Environmental|Infrastructure|Power|Benga
Construction|Port|Building|CoAL|Design|Flow|Mining|Modular|PROJECT|Water|||Equipment|Flow|Power Generation|Power-generation|Service|Environmental|Infrastructure|Power|
© Reuse this

Mining group Rio Tinto says there is likely to be an offtake allocation available for the Southern African power pool from its proposed Benga coal-fired power generation plant, which is being prepared for development in the Tete region of northern Mozambique.

The company is currently seeking expressions of interest from developers with established records of developing, constructing and operating power plants. It also wants the developer to take an equity position in the project.

The capacity of the Benga power project (BPP) is yet to be determined. But a modular deployment is envisaged, with the plant likely to have an initial capacity of between 400 MW and 600 MW.

Environmental sanction has been secured for a far larger 2 000 MW facility, which is to be located on the miner’s Benga mining concession. The Benga mine has already necessitated the development of other infrastructure, including the rehabilitation of the 600 km Sena railway line, the upgrade of the Port of Beira and the construction of a 20-million-ton-a-year coal terminal.

A Rio Tinto Coal Mozambique spokesperson says the power is primarily required for the group’s own consumption, to enable it to operate mining equipment and infrastructure, as well as a coal processing plant.

“Our plans to grow our business in Mozambique could require more than 200 MW into the future. The power plant’s construction will be modular, so that it can provide flexibility in operation and flexibility to scale up to meet future requirements,” the spokesperson explained.

But Rio also has an agreement to sell power to the State-owned Electricidade de Moçambique (EDM). “This will then provide them [EDM] with the ability to service Mozambique demand . . . [and] there will also be an offtake allocation available to the Southern African power pool.”

The project has allocation on existing transmission capacity, and “we will seek to use this, along with additional capacity as and when it becomes available”. It has been reported that the Benga power plant has also been factored into the ‘Mozambique Regional Transmission Backbone Project’, which outlines the building of new transmission infrastructure in the Southern African country.

During the prequalification of potential developers, Rio says it will encourage local companies and that it also intends using local suppliers and labour wherever possible.

“The timing will depend on when the final design of the plant has been determined, and all approvals have been completed. At this stage, it is planned to commence development of the BPP in 2014 and construction is expected to take three years.

It has been reported previously that the project, which was initially proposed by Riversdale Mining, the previous developer of the Benga coal mine, could cost about $1-billion to develop.

In 2011, Rio acquired Riversdale and the large-scale Benga and Zambeze mines. The company is on record as stating that Mozambique is likely to emerge as a major exporter of hard coking coal.

The spokesperson says careful consideration is being given to water use within the power plant and its location. “We are also looking in our design at ways to reduce water use in the local area by recycling treated wastewater to the nearby coal preparation facilities. We are currently speaking with local water authorities on licensing provisions to draw water.”

Edited by: Creamer Media Reporter
© Reuse this Comment Guidelines (150 word limit)
Latest News
French conglomerate Bollore may have to halt work on the Niger to Benin section of its giant West Africa rail project after a rival company won a court order to stop it going ahead. The dispute concerns rival rail schemes in the area.
A week ahead of the second annual gathering of the Forum on China–Africa Cooperation (Focac), in Johannesburg, the JSE is rolling out the proverbial red carpet for Chinese investors looking to Africa’s largest bourse for possible investment opportunities, calling...
The South African National Roads Agency Limited (Sanral) applied for leave to appeal on Friday against the Western Cape High Court judgment that set aside the approvals that would enable it to toll sections of the N1 and N2 freeways in Cape Town. This prompted the...
Recent Research Reports
Water 2015: A review of South Africa's water sector (PDF Report)
Creamer Media’s Water 2015 Report considers the aforementioned issues, not only in the South African context but also in the African and global context in terms of supply and demand, water stress and insecurity, and access to water and sanitation, besides others.
Input Sector Review: Pumps 2015 (PDF Report)
Creamer Media’s 2015 Input Sector Review on Pumps provides an overview of South Africa’s pumps industry with particular focus on pump manufacture and supply, aftermarket services, marketing strategies, local and export demand, imports, sector support, investment...
Liquid Fuels 2015: A review of South Africa's liquid fuels sector (PDF Report)
Creamer Media’s Liquid Fuels 2015 Report examines these issues in the context of South Africa’s business environment; oil and gas exploration; fuel pricing; the development of the country’s biofuels industry; the logistics of transporting liquid fuels; and...
Road and Rail 2015: A review of South Africa's road and rail sectors (PDF Report)
Creamer Media’s Road and Rail 2015 report examines South Africa’s road and rail transport system, with particular focus on the size and state of the country’s road and rail infrastructure and network, the funding and maintenance of these respective networks, and...
Defence 2015: A review of South Africa's defence sector (PDF Report)
Creamer Media’s Coal 2015 report examines South Africa’s coal industry with regards to the business environment, the key participants in the sector, local demand, export sales and coal logistics, projects being undertaken by the large and smaller participants in the...
Real Economy Year Book 2015 (PDF Report)
There are very few beacons of hope on South Africa’s economic horizon. Economic growth is weak, unemployment is rising, electricity supply is insufficient to meet demand and/or spur growth, with poor prospects for many of the commodities mined and exported. However,...
This Week's Magazine
The BMW Group will invest R6-billion at BMW Group South Africa’s (BMW SA’s) Rosslyn plant to produce the next-generation X3 sports-activity vehicle (SAV) for the local and export markets. Rosslyn will continue production of the current 3 Series through its lifecycle,...
The lack of consequences for poor performance and transgressions on the part of contractors remains a significant hurdle to tackling South Africa’s service delivery challenges, delegates heard at the Consulting Engineers South Africa Infrastructure Indaba, on...
City of Ekurhuleni executive mayor Mondli Gungubele earlier this month officially named the city’s bus rapid transit (BRT) system, Harambee.
NICK CHRISTODOULOU As about 58% of data stored by organisations is dark, they must identify this dark data to expose risks and valuable information
About 58% of unstructured data stored by companies is dark data, which means that the value or regulatory importance of the data has not been determined. Subsequently, most of the stored data add costs, rather than increasing revenue or reduce regulatory risks, says...
BRIAN VERWEY Effective management, review and administration of non-core elements can improve business operations and increase revenue and decrease unforeseen risks
Effective logistics, import/export and manufacturing consulting services require detailed industry knowledge and experience, but can add significant value to these industries by providing expert advice on various technical elements in their value chains, says...
Alert Close
Embed Code Close
Research Reports Close
Research Reports are a product of the
Research Channel Africa. Reports can be bought individually or you can gain full access to all reports as part of a Research Channel Africa subscription.
Find Out More Buy Report
Engineering News
Completely Re-Engineered
Experience it now. Click here
*website to launch in a few weeks
Subscribe Now for $96 Close
Subscribe Now for $96