US backs power study for mining regions along Lobito Corridor

U.S. government has expanded its geopolitical push

The United States has agreed to fund a study into expanding hydropower and electricity networks in mining areas of the Democratic Republic of Congo and Zambia, adding an energy component to its support for the Lobito Corridor.

The US Trade and Development Agency (USTDA) signed an agreement with Anzana Electric Group during United Nations General Assembly week. The study will examine power infrastructure in the DRC’s Lualaba Province and Zambia’s North-Western Province, where unreliable supply affects both mining operations and nearby communities.

USTDA is providing a $3 million grant for the feasibility study. It is funding the work needed to plan the project and attract financing, rather than paying for construction at this stage. The agency says the proposed investment is intended to improve electricity access for a region with more than three million residents. Anzana says the wider project aims to bring new connections to more than 500,000 homes and businesses.

The study will assess repairs to existing hydropower facilities, possible new generation capacity and extensions to electricity distribution networks. It will also examine demand from mines and industry, environmental and social impacts, and the financing needed to carry out the work.

Reliable power is a significant constraint in the copper and cobalt producing region. USTDA says stronger electricity networks could help mining companies reduce their reliance on costly diesel generation while expanding supply to households and local businesses. Any new generation or connections will depend on the study’s findings and subsequent investment.

The proposed power work complements the Lobito Corridor’s rail and logistics projects, which seek to link the DRC and Zambia’s mineral producing areas to Angola’s Atlantic port of Lobito. For Washington, the corridor is also part of an effort to diversify supply chains for minerals used in industries including batteries and electronics. USTDA says its study will identify opportunities for US equipment and engineering firms. USTDA

The agreement marks an early planning step. Its test will be whether the proposed power projects secure financing and deliver dependable electricity to communities as well as the mines that anchor the corridor’s commercial ambitions.

 

 

 

Source: Omanghana


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