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The East African : Jun 28th 2015
The EastAfrican 38 BUSINESS JUNE 27 - JULY 3, 2015 MININ G Kenya stops importing power, now generates over 2000 MW In the fi≥st qua≥te≥ of 2015, the count≥y gene≥ated 2,980MW of elect≥icity By ALLAN OLINGO The EastAfrican neighbours because of oversupply from its own sources. Statistics from the Kenya Na- K tional Bureau of Statistics show that Kenya has not imported any power from Tanzania since November last year, while it has scaled down its imports from Uganda. Kenya Power chief executive Bern Chumo said that Kenya was now self-sufficient in terms of power generation after more than 280 MW was added to the grid last year from various geothermal project. “We have seen the geother- mal projects add enough power to the national grid. We have more than enough and are actually now net exporters to Uganda and Tanzania,” Mr Chumo said. Kenya, Uganda and Tanzania have for a long time turned into each other to bridge power supply shortages on their respective national grids. The KNBS data shows that since the beginning of the year, Kenya has imported 17.13 million KWh from Uganda, while exporting 13.83 million KWh to the same country. Kenya has also imported 0.98 million KWh from Ethiopia. On the other hand, it has exported a total of 14.53 million KWh, with 0.7 million KWh of that going to Tanzania. Kenya consumes an average of 540 million KWh of electricity each month, against an average 630 million KWh generated each enya is no longer importing power from its regional in the next five years, electricity will be added to our basket of foreign exchange earners,” said Mr Mugo. Kenya has been tapping the geothermal resources in the Rift Valley as part of its broader ambition to add 5,000 Megawatts to its electricity output by 2017. That will add to the country’s existing capacity of about 2,152 MW. The country has close 3,000 MW of proven geothermal energy in the Rift Valley, but currently exploits just over 390 MW of geothermal capacity. Ethiopia also started selling its power to Kenya last year under the East Africa Community Power Pool agreement even though Kenya said that there wasn’t any electricity business between the two countries. Despite this claim, data from KNBS shows that Kenya has bought 446MW from Ethiopia in the last nine months. In August last year, Ethiopia said that it was planning to export up to 400 MW to Kenya annually. Last week, Ethiopian Elec- President Uhuru Kenyatta and Deputy President William Ruto at the commissioning of the Olkaria IV Geothermal Power Plant, in Naivasha. Geothermal resources have boosted power supply. Picture: File month. Since July last year, the bulk of the country’s electricity is generated from geothermal sources, followed by hydro and thermal sources. In the first quarter of 2015, geothermal “With an installed capacity of more than 2,100MW against a demand of 1,600 MW, we are able to export to our neighbours.” Kengen’s Albert Mugo sources generated 1,476.66 MW, hydro generated 1,018.08 MW while thermal sources generated 485.26 MW. Albert Mugo, the chief execu- tive officer of the Kenya Electricity Generating Company (Kengen) said that currently, Kenya is the only country in the region that has the capacity to supply its citizens and still sell to its neighbours. “With an installed capacity of more than 2,100MW against a demand of 1,600 MW, we are able to offer exports to our neighbours and we do hope that tric Power chief executive Azeb Asnake said that they had signed an agreement to export 400 megawatts to Kenya. Already China Electric Power Equipment and Technology has been picked to construct the Ethiopia-Kenya transmission line at a cost of $120 million, to be financed by the African Development Bank. The project is expected to be complete by August 2017. Ethiopia earns more than $33 million from exporting electric power to Djibouti and Sudan. “The power purchase agree- ment will see us earn $ 0.07 per kilowatt and by selling 400 Megawatts to Kenya, we will be have a great source of hard currency,” Mr Asnake said. It is expected that Kenya will then sell the power to its neighbours through the interconnectivity agreements. Sipa ≥aises $6m to explo≥e mine≥als in Uganda By KENNEDY SENELWA Special Correspondent SIPA RESOURCES Ltd has raised $6 million to fund exploration of nickel and copper within the Kitgum-Pader tenement in northwestern Uganda. The Australian Stock Exchange-listed firm has closed the shares placement and shares purchase plan (SPP) to support exploration work programmes for nickel with copper at the Akelikongo prospect in the Kitgum-Pader project. Sipa managing director Lynda Daley said shares the purchase plan raised $5.24 million instead of the intended $3.5 million as it was oversubscribed and the firm’s directors subscribed to the shares placement. “Directors have exercised their right to accept oversubscriptions in excess of intended issue amount of $3.5 million. Sipa will issue approximately 72.1 million paid ordinary shares at $0.0725 per share under SPP,” she said. The placement raised $667,400 from investors who subscribed to about 9.2 million shares. The company also got $134,000 from directors who subscribed to 1.8 million shares, subject to shareholders’ approval. She said funds from the placement and SPP will be used to investigate potential mineral deposits in the Akelikongo pros- pect. The firm will continue with its hole drilling programme as the ground gravity survey has been completed. Drill samples are sent by air to Johannes- burg for testing. Sipa owns 100 per cent of the Kitgum-Pader project. Uganda has also discovered 116 million tonnes of iron ore deposits valued at $15.6 billion in the southwest of the country after the government recently undertook a series of geophysical surveys. The Ministry of Energy and Mineral De- velopment said the 48 million tonnes of iron ore deposits were discovered in Buhara area. Nagara had 6 million tonnes and Rugando 55 million tonnes of the mineral. Zambia to build a railway from copperbelt to Angola border. Picture: File Zimbabwe lifts four-year ban on chrome ore exports Zimbabwe has lifted lifted a four-year ban on chrome ore exports because Indian and Chinese competitors were processing superior quality ferrochrome. Mines Minister Walter Chidhakwa said the ban was lifted and a 20 per cent export tax on refined chrome cancelled to increase earnings because a ban that is not supported by South Africa will not succeed. The government has reduced power tariffs for base metal miners from 8 to 6.7UScents per kilowatt hour. Zimbawe has 12 per cent of the world’s chromite reserves (an iron chromium oxide mineral) and South Africa holds 70 per cent. secto≥ ≥ound-up Angola lacks qualified young personnel for oil production Angola’s state owned company, Sonangol, is foreseeing difficulties in procuring qualified personnel to conduct oil field production operations in the short term. Sonangol’s director of production Belarmino Chitangueleca said it is difficult to replace technicians who reach the age of retirement in Angola because of lack of qualified personnel in the domestic market. Angola is one of the major exporters of crude oil in Africa. The country has been affected by crude price decline from over $100 barrel in mid 2014 to less than $45 in January this year. The cost of a barrel of oil now averages $65. Rio Tinto, AME EastAfrica to merge mineral sands assets Rio Tinto International Ltd and AME East Africa, a subsidiary of Savannah Resources Plc, plan to merge their heavy mineral sands assets in Mozambique. AME’s Mutamba, Dongane and Jangamo prospects will be merged with Rio Tinto’s Chilubane prospect. Savannah as the operator will earn a 51 per cent stake of MutambaJangamo joint venture by providing funds to complete the scoping, feasibility studies and other work programmes. “The amalgamation combines three areas that are part of the same continuous mineralisation trend,” said Savannah’s chief executive officer David Archer. Zambia railway gets $500m for project to Angola border Zambia’s Northwest Rail has secured $500 million for the first phase of a railway project to connect the country’s copper belt to the Angolan border. The aim is to extend therailway line to Angola’s Atlantic coast. South Africa’s Grindrod and other shareholders will provide equity and the debt component will be funded by several banks. Northwest Rail’s chairman Enoch Kavindele said the firm in February 2014 contracted Grindrod to build, operate and maintain 590 kilometres of line.
Jun 21st 2015
Jul 5th 2015