https://www.engineeringnews.co.za

Chinese-led consortium clinches Kenya coal concession

5th June 2015

By: John Muchira

Creamer Media Correspondent

  

Font size: - +

Kenya has selected a consortium led by China’s HCIG Energy Investment Company to develop a coal mining project after a previous attempt failed to produce a successful bidder.

HCIG Energy, in partnership with Liketh Investment Kenya, will carry out coal mining in Block A and Block B, in the Mui basin, in Kitui, about 180 km east of Nairobi.

The concession also provides for the construction of a coal-fired power plant that will use some of the coal to generate power for the mine’s consumption, for sale to the national grid and for the exploitation of coal-bed methane, if it is found.

The concession for Block C and Block D has already been awarded to another Chinese company, Fenxi Mining.
Projections by the Ministry of Energy indicate that Kenya has at least one-billion metric tonnes of recoverable coal in the four exploration blocks in the Mui coal basin.
Fenxi Mining, which was awarded the concession in 2011, has already committed to investing $500-million in the project and plans to start commercial production next year.

The HCIG Energy-led consortium will now be invited for negotiations on the finer details of the project.
Capital Base The consortium demonstrated during the bidding process that it had a capital base of $100-million and a yearly turnover of more than $100-million and that it was able to raise over $200-million to invest in the project.
The HCIG Energy consortium beat two other consortiums to win the tender. These were a consortium of Transcentury Investments, Continental Oil and Power Machines and a consortium of China Northeast Electric Power Engineering Corporation and China Coal Technology & Engineering Group.
Kenya is banking on coal for power generation as it seeks to increase electricity output to 5 000 MW by 2017.
Already, the East African nation is in the process of building a $2-billion coal-powered plant in Lamu that will generate 960 MW.

To watch Creamer Media's latest video reports, click here
 

Edited by Martin Zhuwakinyu
Creamer Media Magazine Managing Editor

Article Enquiry

Email Article

Save Article

Feedback

To advertise email advertising@creamermedia.co.za or click here

Showroom

Axiom Hydraulics
Axiom Hydraulics

Axiom Hydraulics is a trusted leader in South Africa’s hydraulic industry, delivering world-class components, systems, and engineering expertise...

VISIT SHOWROOM 
Egoli Gas (Pty) Ltd
Egoli Gas (Pty) Ltd

As a reticulator, Egoli Gas provides natural gas to homes and businesses via underground pipes.

VISIT SHOWROOM 

Latest Multimedia

sponsored by

Option 1 (equivalent of R125 a month):

Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format

Option 2 (equivalent of R375 a month):

All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.

Already a subscriber?

Forgotten your password?

MAGAZINE & ONLINE

SUBSCRIBE

RESEARCH CHANNEL AFRICA

SUBSCRIBE

CORPORATE PACKAGES

CLICK FOR A QUOTATION







301

sq:0.041 0.604s - 122pq - 2rq
Subscribe Now