Luena Katanga power station

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Luena Katanga power station is a shelved power station in Katanga, DR Congo. It is also known as Centrale Thermique de Luena (CTL).

Location

Table 1: Project-level location details

Plant name Location Coordinates (WGS 84)
Luena Katanga power station Katanga, DR Congo -11.133333, 27.1 (approximate)

The map below shows the approximate location of the power station.

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Project Details

Table 2: Unit-level details

Unit name Status Fuel(s) Capacity (MW) Technology Start year Retired year
Unit 1 shelved coal - unknown 500 subcritical

Table 3: Unit-level ownership and operator details

Unit name Owner
Unit 1 Gecamines SA [100.0%]

Project-level captive use details

  • Captive industry use (heat or power): other metals & mining
  • Captive industry: Power

Project-level coal details

  • Coal source(s): Luena

Background

In October 2012, it was reported that La Générale des Carrières et des Mines (Gécamines), Democratic Republic of Congo’s state-owned copper mining company, proposed to build a 500 MW coal-fired plant near its mining operations "in order to help address electricity shortages." It would use coal from Luena in Katanga province. The plant was estimated to cost US$648 million.[1]

The company appears to have various coal holdings: Luena ("partially exploited"), Kaluku ("exploitation suspended"), Kisulu ("in exploitation following a mini Northeast project"), and Kalule, Luweisha, Shiwa, and Kawawa ("not valued yet").[2]

The company commissioned a feasibility study in 2014 – reportedly to Evagor and Harress Pickel Consult AG[3] – and planned for construction by 2015 and operation by 2017. Gecamines needed to raise about US$2.8 billion to fund the power plant.[4]

In June 2017, Gecamines said it had established a consortium to develop the 500 MW coal-fired power plant first proposed in 2012. Construction was planned to start in early 2018, with commissioning planned for 2021.[5]

In July 2018, it was reported that Gecamines was undergoing a company restructuring.[6]

In October 2019, various elected officials met with Gecamines representatives and other stakeholders to discuss the project. The parties discussed the initial $15 million feasibility study conducted and the funding needed to carry additional studies. In addition, parties raised concerns about the company seemingly changing the capacity and cost of the project multiple times, as well as concerns with the existing German-investor led feasibility and financial viability analyses. The parties appeared to have concluded that the government would need to secure $20 million to complete necessary studies and that Gecamines would need to identify additional partners to move the project forward. The elected officials of the Upper Lomami region seemingly established a unit to keep in touch with the company and to continue efforts to move the project forward through the central government.[7]

Various more recent articles also noted that Evagor – a company now seemingly focused on railroads and hydrogen in Congo[8] – and Gécamines were in court over the feasibility study financing issue.[9][10]

In June 2023, the former project coordinator at the power station stated that the project had "not come to fruition."[11]

Gécamines 2022 annual report, which appeared to be published in September 2023, included the power station as a project that was "awaiting a source of funding."[12]

As of November 2023, there had been no apparent developments on the project, and it appeared to be shelved.

Copper production in Katanga

In July 2015, Gecamines sold a copper-cobalt mining permit in southeast Katanga province to Chinese investors for US$52 million. The nearly 13 square kilometer concession would now be run by China Nonferrous Metal Mining Co. and a unit of Huayou Cobalt Co.[13] Gecamines had already signed a joint venture agreement with Sinohydro Corp and China Railway Group Limited in southern Katanga province to produce copper.[14]

Corruption allegations

In May 2022, a government financial watchdog reported that over $400 million in taxes and loans meant to be paid by Gecamines was unaccounted for. Of $591 million claimed by the company as paid to the national treasury, only $178 million could be traced. According to Reuters, the company had a long history of financial corruption accusations.[15] Similar reporting from June 2022 highlighted questions of embezzlement, misuse of income and additional debt to staff and third parties worth tens of millions of dollars between 2010 and 2020.[16]

Articles and Resources

References

  1. "Congo’s Gecamines Plans 500 Megawatt Coal-Fired Plant" Bloomberg, October 24, 2012
  2. "Nos Activités: Les Charbonnages De Luena (LNA)," Gécamines, accessed December 2021 (translated)
  3. "Gecamines – Luena Coal-fired Power Plant 500 MW – Democratic Republic of Congo," GlobalData, June 7, 2018
  4. " Gecamines Seeks Power Plant by ’17 for Copper Output Gain," Bloomberg, February 4, 2014
  5. "Katanga: un consortium pour produire 500 mégawatts d’électricité en 2018," lapresseducongo, June 27, 2017
  6. "DRC’s Gécamines officially initiates business restructure," Zambia Mining, July 6, 2018
  7. "Les élus du Haut Lomami plaident pour l’aboutissement du projet de la centrale thermique de Luena," Politico.cd, Thierry Mfundu, October 2, 2019
  8. "Evagor," Evagor, accessed December 2021
  9. "RDC : L’hydrogène congolais, énergie de l’avenir pour l’UE. Mythe ou réalité," La libre Afrique, October 14, 2020
  10. "Unlikely German trio push spectacular 10,000 km rail project," Africa Intelligence, October 27, 2020 (paywall)
  11. "Interview with Mr. Teddy LWAMBA MUBA," Mining and Business, June 12, 2023
  12. "Rapport Annuel de Gestion - Exercice 2022," Gécamines, September 2023
  13. "Congo’s Gecamines sells copper assets to Chinese for $52 million," Mining.com, July 14, 2015
  14. "DR Congo-China JV to produce copper by end 2015," African Review, May 25, 2015
  15. "Congo auditor says $400 million went missing from state mining company," Reuters, June 4, 2022
  16. "DRC: Gécamines and the missing millions," The Africa Report, June 6, 2022

Additional data

To access additional data, including an interactive map of coal-fired power stations, a downloadable dataset, and summary data, please visit the Global Coal Plant Tracker on the Global Energy Monitor website.