1. HISTORY Manono developed from the beginning of the 20th century 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 with the war that broke out in 1997. A quarter of a century later, vegetation grew on the ruins andHeaps of 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 the Belgian 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 power stations served the mine, the mechanical workshops and the mining camp until the collapse of the price of tin in the years Rehabilitation of mpiana mwanga I & II 1980 and theclosure 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 waged 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 such that all engines, electrical cables, including transmission lines, and instruments were stripped, with the exception of thecivil 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 corporate purpose consists of the study and development of projects in the electricity sector such as hydroelectricity, solar power, wind powerand thermal energy in the DRC, had, on June 4, 2019, requested the rehabilitation of Mpiana Mwanga by submitting a letter of intent expressing 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 territory of Manono.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 20 |3RD QUARTER SEPTEMBER 2023 WWW.FEC-RDC.COM
COMINIÈRE SA, AVZ INTERNATIONAL LTD, DATHOMIR MINING RESOURCES SARL and DATHCOM MINING SA, not only for the exploitation of the lithium 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 – POWER PLANT REHABILITATION AVZ Power SAU (AVZP) is working in collaboration with the Ministry of Water Resources and Electricity (MHRE) to secure a concession to renovate and operate the existing Mpiana Mwanga power station to provide electricityelectricity to the Manono lithium and tin operations and to the communities of Mpiana Mwanga and Manono.These plants are run-of-river hydroelectric plants, located on the Luvua River approximately 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 old Mpiana Mwanga facilities and found the following: • The newer of two existing turbine rooms, built around 1952, was designed for 3 vertical shaft Kaplan turbinesof 8.98 MW, of which only two have been 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 requires complete renovation.• The Manono HV substation is also unusable and will require replacement and complete reconstruction to modern specifications and standards.• Both turbine halls require significant concrete and structural repairs to return them to service.b.ENVIRONMENTAL STUDIES ON ELECTRICITY PRODUCTION, 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 5, 2020 for: • Hydroelectric power station • 120 kV overhead power line • 90 km of road rehabilitation from Manono to Mpiana Mwanga The ESIA report was approved by the AgencyCongolese Environment Authority (ACE).4. INTERMEDIATE STEPS IN THE PROCESS LEADING TO THE DFS VALIDATION PROCESS The COHERENT intermediate steps leading to the DFS validation process are listed below: • June 21 to July 3, 2019: SG/MHRE and COMINIÈRE SA carry out a joint missionon-site visit through their collective mission orders: n° 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 for 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 dispatched a 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 withAVZ POWER SAU within the framework of technical and environmental assessments.• November 5, 2020: AVZ POWER SAU obtains three Environmental Certificates from ACE (Congolese Environment Agency) upon favorable opinion from 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 rehabilitation project of the Manono-Mpiana Mwanga road, long95 km,
CONSTITUTION OF DFS VALIDATION COMMITTEE BY MHRE According to the MoU, the DFS was to be submitted to the MHRE along with the ACE certificates of the 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 of the MHRE • Advisor in charge of solar and wind energy of the MHRE staff • Advisor in charge ofin charge of finances of MHRE staff • Advisor in charge of training of MHRE staff • Director – Head of Electricity Department of the MHRE General Secretariat • Director – Head of Renewable Energy Department of the MHRE General Secretariat • Head of single division of the MHREGeneral Secretariat of the MHRE • Rural Electrification Division Head of the General Secretariat of the MHRE • Head of the Distribution Division of the General Secretariat of the MHRE • Head of the Renewable Energy Division of the General Secretariat of the MHRE • Expert of the NATIONAL COMMISSION OFENERGY (CNE) • Expert from the UNIVERSITY OF KINSHASA (UNIKIN) • Expert from the HIGHER INSTITUTE OF APPLIED TECHNIQUES (ISTA) • Independent expert 6. THE DFS VALIDATION COMMITTEE BY MHRE WORKING METHODOLOGY OF THE COMMISSION • Presentation of the reportby the representative of the Consortium • Free reading and critique, by expert, of the DFS report (scientific and technical opinions and considerations) • The entire 120KVA overhead line will be replaced by new aluminum and OPGR cables 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 panel of experts fromConsultant on each concern expressed by DRC experts.• Preparation of the report sanctioning the end of the validation work CONTENT OF THE PROJECT • Introduction to the Mpiana Mwanga project • Current state of the infrastructure • Methodological approach to the renovation of Mpiana Mwanga I and II • Non-destructive checks on the infrastructureexport and certification • Technical characteristics of electromechanical devices and equipment • Synoptic table on production, investment cost and work execution schedule SCOPE OF WORK ON MPIANA MWANGA • Component 1: Replacement of MM I and MM II turbinesby 3 new modern 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 power compared to a previous one of 30 MW.A third turbine will be installed in position 3 not previously used at 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 is possible 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 were approved by the Congolese Environment Agency (ACE), the MRHE expert group examined the DFS prepared by AVZP from February 27 toMarch 02, 2021, 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 hasfulfilled all requirements in accordance with the DRC Electricity Law of 2014 and its secondary legislation, to obtain the concession contract.AVZP will be integrated into a PPP collaboration agreement which 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 before factoring for power losses.line.The energy will mainly be used for food
