Page 7 - Vol 28 Issue 29 2019

news briefs

The results of the environmental impact study for the Republic of Congo could produce nearly 1 million barrels of crude per
proposed open cast mine have been divulged in Tete city, and day following a new oil discovery in the country, a company involved
consultations with the Mucangadzi communities who will be told Reuters recently.
affected are under way. The find could possibly quadruple the nation’s output and propel it
into the same league as Africa’s largest producers.
The mining concession area covers about 5,000 hectares, and
there is enough coal to keep the mine going for between 30 Production, which will be ramped up in phases, could begin in six
and 40 years. The initial investment by JSW Adams will be in the months. If it reaches expected levels, Congo’s production would be
close to Nigeria, which produces about 1.8 million barrels a day, and
order of 20 million US dollars. Angola, at around 1.4 million.
But an obvious problem with mining in Zumbo is that this is the Congo’s cash-strapped energy industry has been boosted by major
most remote part of Tete. The roads are unreliable and there recent finds from Italy’s ENI and France’s Total, lifting an economy
is no railway in the district. Any company hoping to export coal hobbled by debt, civil unrest and corruption, and raising output to
from Zumbo must first invest in a railway. Such a new line could about 350,000 barrels per day.
link up with the existing railway through Malawi to the port of Production from the new field, developed by SARPD-OIL in la Cuvette
Nacala-a-Velha on the northern Mozambican coast, or could go region, could dwarf that, said the company’s marketing director
further south to the proposed new port at Macuse in Zambezia Mohamed Rahmani.
province. A government spokesman did not immediately comment on the
These logistical headaches, plus the fluctuations in the price of discovery, Reuters reported.
coal, should give any investor pause for thought. SARPD estimates the field holds 1 billion cubic metres of hydrocarbons,
including 359 million barrels of oil, with a potential for daily output of
983,000 barrels, Rahmani said.
Burundi That, the company reckons, could bring in $10.5 billion a year into
Congo, doubling the Central African country’s GDP.
Gakara mine ready for expansion
With battery and electric vehicle technology quickly becoming Mauritania
the global standard for transportation, Africa’s rare earth metals
are in hot demand. Projects like the Gakara mine Burundi in are Exploration activities gain
becoming star attractions, putting mineral producing countries
on the map. momentum in Mauritania
Gakara is one of the world’s richest rare earth deposits. Underneath the Atlantic Ocean, lapping the West African coast, sits
According to research from operator Rainbow Rare Earths, substantial pockets of oil & gas. This is certainly the case in Mauritania,
and the race is on to access these deepwater resources.
alongside MSA Group, the map’s exploration potential is up to
80,000 tons of mineralised material with gradings between 47- The Tortue Ahmeyin field is the subject of much foreign interest. Kosmos
Energy has been one of the key motivators behind development of this
67% REO. That’s many time’s higher than industry norms. major find, and, along with BP, is set to develop a floating $2bn LNG
What’s more, Gakara, which has been producing for just over hub, straddling the Mauritanian-Senegalese maritime border.
two years, has been relatively cheap for high ROI. Total capex Tortue FLNG, despite having a projected cost of $2bn, is expected to
at the site is estimated at around $10m. Given the demand for generate $2bn in revenues for the Mauritanian government, which
rare earth metals for magnets, EV components, smartphones, would give it the power to transform its internal infrastructure, and
and more, it’s a highly lucrative development – and one that create an even better deal-making environment for IOCs.
highlights why investors find Africa profitable. Indeed, many have already flocked to the West African nation. Apart
from the aforementioned BP and Kosmos, Shell is one of the key
As of 2019, an expansion regime is coming to Gakara. Rainbow explorers operating in offshore Mauritania right now.
plans on boosting production by spreading operations over The Mauritanian minister of oil, energy and mining, Mohamed Ould
multiple deposits at the Gakara site. Additionally, it is looking Abdel Vetah, said: “Shell’s entry in the Mauritania offshore area
at improving downstream separation capability to capture represents an important added value to the exploration activities and
more mineral content. To do so, Rainbow has launched a joint will contribute to maintain the momentum for developing the energy
venture with TechMet to develop this capability further. sector in Mauritania.”
This came after Shell came to a production sharing agreement with
oil July 2018.
the Mauritanian energy ministry, letting it begin exploratory drilling in
Mauritania itself has a lot going for it when it comes to oil & gas
investment. For instance, its tax and fiscal system is geared towards
making it easy for exploration to generate big returns, assuming
hydrocarbons are found. Secondly, no royalty payments are required
as of yet, and corporate income tax floats around 25%.
Congo-Brazzaville Mauritania is a strong investment hub, as interest from multinationals
demonstrates.
Congo May Join Nigeria As
Africa’s Largest Oil Producers

AFRICAN POWER Mining & Oil Review Vol 28, Issue 29, 2019 | 7