13/10/2023
webclever posted
Page 20-22 of the Federation of Congolese Enterprises’ report in ENGLISH
Rehabilitation
by mpiana mwanga I & II
1. HISTORICAL
Manono developed from the beginning of the 20thcentury when Belgian settlers exploited a promising cassiterite deposit, as it was then known to be a cassiterite deposit.
Mines as well as quarries, smelters, dams, housing and the railway brought prosperity. It was then known as Congo-Etain, a state-owned company which became Zaire-Etain after the country changed its name to Zaire, and then became La Cominière (Congolese Mining Company).
But gradually, after the turbulent years and mismanagement that followed independence in 1960, the mining equipment deteriorated and Manono gradually became dormant.
The decline was encouraged by falling tin prices, although the final blow came from the war that broke out in 1997.
A quarter of a century later, vegetation has grown on the ruins and slag heaps are covered with trees, while two steam locomotives, a crane and wagons rust on the side of a road.
Mpiana Mwanga I and II were set up to supply electricity to the tin mine. The power plants are located 95 km from Manono territory on the Kalemie road.
Commissioned in 1932 and 1952, 91 and 71 years ago respectively by Géomines, a company of theBelgian monarchy.
The electricity used at the time was to supply the mines and surrounding areas, the mechanical workshops, the hospital, the flour mill, the water pumping stations, the offices and houses of the Belgians and the workers' camp.
The Zaireanization process of 1973 resulted in the separation of ownership and concessions granted to Zaire Etain.
Mpiana Mwanga II operated from 1948 to 1986. The two plants served the mine, the mechanical workshops and the mining camp until the collapse of the price of tin in the 1990s.
1980 and the closure of the mine at the same time.
The Mpiana Mwanga I operation was shut down due to lack of oil in 1999 following a new war by RCD rebels supported by their Rwandan allies, although the war had already started in 1997.
Following these events, Mpiana Mwanga I and II were vandalized to the extreme so that allengines, electrical cables including transmission lines, and instruments were stripped, except for civil infrastructure.
PROPERTY TITLES
Mpiana Mwanga I and II belong to the Congolese State according to the provisions of article 52 of Law 14/011 of June 17, 2014 relating to the electricity sector.
AVZ POWER SAU, subsidiary of the international company under Australian law AVZ MINERALS LTD, whose purposesocial consists of the study and development of projects in the electricity sector such as hydroelectricity, solar, wind and thermal energy in the DRC, had, on June 4, 2019, requested the rehabilitation of Mpiana Mwanga by submitting a letter of intent for expression of interest to the Ministry of Hydraulic Resources and Electricity.
Such a request was welcomed by the MHRE as the ultimate objective was to use the electricity in the restart of the Dathcom mine and its surroundings at Manono located in the Manono territory. It indicates that Dathcom is a joint venture of which Cominière and AVZ International are partners, Cominière being a parastatal company.
2. Memorandum of Understanding
On January 13, 2020, a Memorandum of Understanding (MOU) was signed between the DRC (MHRE) and AVZ POWER SAU. Objective: rehabilitation of the Mpiana Mwanga I and II hydroelectric power stations as part of the implementation of the joint venture contract, led by AVZ INTERNATIONAL LTD and signed between them, that is to say, between the companies
COMINIÈRE SA, AVZ INTERNATIONAL LTD, DATHOMIR MINING RESOURCES SARL and DATHCOM MINING SA, not only for the exploitation oflithium mine but also for the electrification of Manono and its surroundings.
The memorandum of understanding stipulated the responsibility of the AVZP to carry out a definitive feasibility study (DFS). AVZP also obtained a baseline Environmental and Social Impact Assessment (ESIA) in September 2020, a prerequisite for proceeding with the DFS.
3. DFS
a. DFS – REHABILITATION OF POWER PLANTS
AVZ Power SAU (AVZP) works collaborativelywith the Ministry of Water Resources and Electricity (MHRE) to secure a concession to renovate and operate the existing Mpiana Mwanga power station to provide electricity to the Manono lithium and tin operations and the communities of Mpiana Mwanga and Manono.
These power plants are hydroelectric power plantsalong the water, located on the Luvua River about 90 km southeast of Manono. They have not been operated since the mid-1980s and late 1990s, and have been significantly stripped of copper pylons and transmission lines, rendering them unusable. The power stations were originally built respectively in two stages with a head height difference of 23 m located on the Luvua River.
To date, AVZP has conducted a DFS on the former Mpiana Mwanga facilities and found the following:
• The newer of two existing turbine halls, built around 1952, was designed for 3 8.98 MW vertical shaft Kaplan turbines, of which only two were installed. All other infrastructure in terms of concrete and structural steel exists for the third turbine, with the exception of the roof which has been completely removed.
• The older of two turbine rooms, built around 1932, was designed for 3 x 4 MW vertical shaft Francis turbines.
• The HV switching station is unusable and will need to be replaced. This switching station was severely neglected and dilapidated. It will require a complete rebuild to modern specifications and standards.
• The 120 kV overhead power line to Manono was stripped of copper line and most of the pylons were damaged when the power cables were stolen. Unfortunately, many insulators were also damaged during the looting.
• The road from Mpiana Mwanga to Manono requiresa complete renovation.
• The Manono HV substation is also unusable and will require replacement and complete rebuilding to modern specifications and standards.
• Both turbine halls require significant concrete and structural repairs to return them to service.
b. ENVIRONMENTAL STUDIES ON POWER GENERATION, POWER TRANSMISSION LINES AND ROADS
In accordance with the requirements of the concession application process, AVZP also conducted three ESIAs which were all approved by the Congolese Environment Agency (ACE).
These were awarded by the ACE on November 52020 for:
• Hydroelectric power plant
• 120 kV overhead power line
• 90 km of road repair from Manono to Mpiana Mwanga
The ESIA report was approved by the Congolese Environment Agency (ACE).
4. INTERMEDIATE STEPS IN THE PROCESS LEADING TO THE SFD VALIDATION PROCESS
The COHERENT intermediate steps leadingto the DFS validation process are listed below:
• June 21 to July 3, 2019: SG/MHRE and COMINIÈRE SA carry out a joint on-site visit mission through their collective mission orders: No. ERH/ SG/0/036/B9/NB/19 of June 21, 2019 in Kinshasa and n°026/CEM/DG/2019 of June 24 in Lubumbashi. Mission composed of experts from MHRE, COMINIÈRE and AVZ POWER SAU to a proven inventory of these infrastructures.
• January 13, 2020: Signature of a memorandum of understanding between MHRE and AVZ POWER SAU for the rehabilitation of the installations of the Mpiana Mwanga I and II hydroelectric power stations and their outbuildings.
• September 15 to 31, 2020: SG/MHRE dispatcheda second mission by service order n°RHE/0/SG/070/B9/SM/2020 carried out by an MHRE expert to support the technical agents of the bidding companies with AVZ POWER SAU in the context of technical and environmental assessments .
• November 5, 2020: AVZ POWER SAU obtains thethree Environmental Certificates from ACE (Congolese Environment Agency) on favorable opinion of the panel of experts in environmental and social impact studies:
• Environmental certificate No.100/ACE/CM/JCEE/2020 for the rehabilitation of 120kV high voltage power Manono – Mpiana Mwanga
• Environmental certificate No. 101/ACE/CM/JCEE/2020 for the Manono-Mpiana Mwanga road rehabilitation project, 95 km long, Tanganyika province
• Environmental certificate No. 102/ACE/CM/JCEE/2020 for the rehabilitation project of the Mpiana Mwanga I and II hydroelectric power stations with a potential production capacity of 44.4 MW in Mpiana Mwanga, Tanganyika province.
• December 23 to 10, 2020: SG/MHRE dispatcheda third mission by service order no. RHE/4/SG/0/114/B9/SMW/2020 carried out by experts from COMINIERE SA and AVZ POWER SAU for a complete assessment with a view to planning the rehabilitation work.
• December 14, 2020: Request by the company AVZ POWER SAU to convene a Joint Technical Committee to examine the file relating to the award of the concession contract for the rehabilitation of the Mpiana Mwanga I and II hydroelectric power stations.
• January 29, 2021: Signature of Ministerial Order No. 129/CAB/MIN/RHE/EMM/2021 of January 29, 2021, by His Excellency the Minister of State, Minister of Hydraulic Resources and Electricity establishing the Committee Monitoring Technique for the Rehabilitation Project of the Mpiana Mwanga I and II Power Plants.
• February 27, 2021: Convocation by the SG-MHREby its reference letter No. RHE/SG/0/0327/D9/SM/2021 from an ad hoc committee of multisectoral and multidisciplinary experts for the analysis and validation of the feasibility studies of the Mpiana Mwanga I hydroelectric power stations and II.
• March 22, 2021: By his letter n°.CAB/MIN/RHE/BMP/209/AAM/21, His Excellency the Minister of State, Minister of Hydraulic Resourcesand Electricity after validation of the studies by the ad hoc committee of multi-sector experts, authorized AVZ POWER SAU to continue work on the Mpiana Mwanga I and II site taking into account its recommendations.
5. CONSTITUTION OF THE DFS VALIDATION COMMITTEE BY MHRE
According to the MoU, the DFS was to be submitted to the MHRE along with ACE certificates of ESIA reports on power generation, power lines and roads.
Following this submission, a validation committee was formed by the MHRE composed of representatives of the following institutions:
• Advisor in charge of hydroelectricity at MHRE
• Advisein charge of solar and wind energy of MHRE staff
• Advisein charge of MHRE staff finances
• Advisor in charge of training MHRE staff
• Director – Head of Electricity Department of the SecretariatGeneral of the MHRE
• Director – Head of the Renewable Energy Department of the MHRE General Secretariat
• Single division head of the MHRE General Secretariat
• Rural Electrification Division Head of the MHRE General Secretariat
• Head of the Distribution Division of the MHRE General Secretariat
• Head of the Renewable Energy Division of the MHRE General Secretariat
• Expert from the NATIONAL ENERGY COMMISSION (CNE)
• Expert of UNIVERSITY OF KINSHASA(UNIKIN)
• Expert of the INSTITUTE SUPERIOR OF THE TECHNIQUES APPLIED(ISTA)
• Independent expert
6. THE DFS VALIDATION COMMITTEE BY MHRE WORKING METHODOLOGY OF THE COMMISSION
• Presentation of thereport by the representative of the Consortium
• Free reading and criticism, by expert, of the DFS report (opinions and considerationsscientific and technical)
• The entire 120KVA overhead line will be replaced with new cablesmade of aluminum and OPGR using modern insulating technology.
• Pooling of opinions and reflections of experts from the DRC made up of scientific discipline sectors (hydrology and geotechnics, electromechanics and electricity, social and environmental protection, economic and financial aspects)
• Debate and exchanges with the Consultant's panel of experts on each concern expressed by the DRC experts.
• Elaborationof the report sanctioning the end of the validation work
PROJECT CONTENT
• Introduction to the Mpiana Mwanga project
• Current state of infrastructure
• Methodological approach to the renovation of Mpiana Mwanga I and II
• Non-destructive testing on export infrastructure and certification
• Featurestechniques of electromechanical devices and equipment
• Synoptic table on production, investment cost and scheduleexecution of the work
SCOPE OF WORK ON MPIANA MWANGA
• Component 1: Replacement of MM I and MM II turbines with 3 new onesmodern Kaplan units each (10.3 MW for MM I and 4.5 MW for MM II) for a total of 44.4 MW of installed capacity compared to a previous one of 30 MW. A third turbine will be installed in position 3 not previously usedto MM II
• Component 2: Installation of substations with control and measuring devices. In addition, all electrical equipment and instruments will be new and no old equipment will be reused.
• Component 3: General renovation works. For example, restoration of concrete spillage and damage to the metal structure ispossible and will be completed.
• Component 4: HT 120KVA electricity transmission line. The entire HT system will be new, including the 120KVA power line to Manono with support towers and insulators as well as HT substations at each end of the transmission line. The new transmission line will be equipped with an optical fiber ground wire (OPGW) to facilitate communication with the control room of the Manono processing plant.
• Component 5: Rehabilitation of the Manono -Mpiana Mwanga road
Once the ESIA reports have been approved by the AgencyCongolaise de l'Environnement (ACE), the MRHE expert group reviewed the DFS prepared by AVZP from February 27 to March 2, 2021, and then approved it for use. Following the report of the Validation Committee, the Minister of State, Minister of RHE validated the DFS on March 22, 2021 in his letter referenced
CAB/MIN/RHE/BMP/209/AAM/21 dated March 22, 2021.
AVZP fulfilled all requirements in accordance with the DRC Electricity Law 2014 and its secondary legislation, to obtain the concession contract. AVZP will be integrated into a PPP collaboration agreementwhich was under review by the DRC government.
From the award of the concession, AVZP expects the renovation to take between 16 and 18 months for Turbine Hall 2. Turbine Hall 1, which requires more design than Turbine Hall 2, will take another 12 months to complete.
AVZP plans to install 3 new 10.3 MW turbines in Hall 2, then potentially 3 units of the 4.5 MW turbines in Hall 1. This will provide a theoretical production capacity of 44.4MW beforefactoring of line losses.
The energy will primarily be used to power the Manono lithium and tin operations to be built by Dathcom Mining SA (Dathcom) at the former Roche Dure open pit in Manono and the Manono Special Economic Zone.
AVZP will strive to meet energy demandrenewable from its main buyer, Dathcom. Dathcom's goal is to work toward becoming a zero-carbon mining operation by 2030, as well as being a good corporate citizen and providing surplus energy to the community through the local distribution network. AVZP will also provide energy for essential social services.
7. THE EXPANSION CONCESSION AWARD PROCESS
The authorization to continue the stages of implementation of the works on the Mpiana Mwanga I and II site being granted by His Excellency the Minister of State, Minister of Hydraulic Resources and Electricity, only the signature by His Excellency will remain. Excellency the Governor of the Province of Tanganyika of the concession document of the Company AVZ POWER SAU in order to comply with the requirements of articles 47, 74, 75 and 76 of Law 14/011 of June 17, 2014 relating to the sector of electricity.
The process of awarding the concession for the operation of the Mpiana Mwanga power stations to begin the financing and execution of the renovation of MM I and II has not yet materialized due to the interference of Cominière although the final use of electricity is to power the mine and surrounding areas of Manono. AVZ POWER SA has excluded itself from distribution outside the mining enclosure.
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