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English to Chinese: Possible Transactions in Africa General field: Bus/Financial Detailed field: Marketing / Market Research
Source text - English Description of Possible Transactions in Africa
Captive Power Plant in Southern Africa.
Khanyisa 450MW captive power plant (South Africa) – Anglo American has embarked on a commercial procurement process for delivery of a 450MW power plant fuelled by discard coal making it an also an environmentally friendly project. The project is projected to cost USD 1bn. The proposed Independent Power Plant (IPP) will utilise a circulating fluidized-bed technology and be supplied by its thermal coal business unit. The initial single offtaker was meant to be Anglo American’s Platinum division but to avoid significant finance lease impact on its balance sheet, it has decided that other parties would be sort to participate in a 25 year purchasing power agreement (PPA) and will be delivered to a number of its operations via the Eskom network. The power plant at the heart of Khanyisa IPP comprises of three 150 MW circulating fluidized bed boilers, each with its own turbine generator set. Although the land that has been chosen has to be fully secured, it is expected that with delays the commercial operations date to before 2017. The project is expected to create 900 to 1200 direct jobs during construction and 100 permanent jobs during operations.
Mine Mouth Coal Fired Power Plants (Central Africa)
Existing power generation capacity in a lot of African countries is inadequate to meet the increasing demand for power and most countries are seeking to diversify its power sources away from their core power generation technologies in order to achieve a better generation mix. Some countries which mainly have hydro generated power are promoting the development of coal resources, as well as the development of electricity generation using coal through private sector investment. To achieve this, we see governments issue coal mining and power generation licences to the Private sector. In one instance, a private entity with both the mining and power generation licences, structure a 300MW power plant based on a circulating fluidised bed (CFB) on the mine mouth so as to reduce cost and transport risk associated with moving the coal to the plant. It was structured with an EPC and O&M contractor element under a turnkey basis sourced from the market. The project value was an estimated $600m.A purchasing power agreement (PPA) with the national utility would be agreed with required terms to make the project bankable.
West African Ports
The West African ports are under immense pressure under increased maritime activity with forecasts depicting the same trend. With high GDP growth and along with the recent oil discoveries of the last few years are all showing a net deficit in port capacity. Many countries have employed expansion strategies to the present ports but all have their own limitations and port authorities are encouraging the development of greenfield ports. Some examples of the port activity are:
(a) A new greenfield deep water port project which is planned to be built at a cost of USD 1.5bn to alleviate the large capacity constraints in the region. The developer of the port has been successful in being awarded a 45-year concession to build and operate the port to a full capacity of 2.5m TEUs plus a dry and liquid bulk terminal. The project has been structured to attract project finance funding of debt and equity and is in the process to financial close. The underlying EPC contract has been signed on a fixed key basis and similarly with the terminal operator.
(b) In a separate West African country, there has been a phenomenal throughput growth of c.56% within three years while the facility capacities have remained static. Preliminary studies have shown that there is to be robust continued growth in maritime trade into the next three decades and this has spurred expansions and a formulation of a master plan for roll out of future ports. Presently the government has taken to an immediate expansion plan of 23 berths but the actual number of berths to completion will depend on financing and may end in a phased approach.
(c) There is a similar opportunity to (b) in another West African country that we are pursuing to have a better understanding of their procurement strategies.
Central Africa-Potash Mine
Road and Port Infrastructure for a Potash Mine (Republic of Congo) – Elemental Minerals Ltd, listed on the Australian and Toronto stock exchanges, is advancing the Sintoukola potash Project in the country with the expectation of becoming a low cost potash producer to supply the Brazilian and Asian markets. Elemental owns a 93% interest in the project. The project is comprised of an exploration licence for potash salts over an area of 1400 sq. km and within the permit area, the Kola project covers an area of 600 sq. km. The project is 90km north of Pointe Noire and 30km from the coast. This is an opportunity to participate in various extractive infrastructure requirements (roads, power supply, gas supply, and running of mine transportation) of a potash project that has a project value of USD 400m.It has recently been reported that the Dingyi Investment Group is in the process of doing a due diligence with the intention of a making an off-market takeover offer for all the fully paid ordinary shares of Elemental.