Latest News

Sources say Trafigura has withdrawn from the Angola Transmission Line Project

Trafigura has "walked away" from a proposed 2,050 megawatt transmission line that would have transported surplus hydropower in Angola to copper mines and cobalt deposits in Zambia and the Democratic Republic of Congo, according to two sources who are directly involved.

This is one of three private-backed transmission projects, worth billions, that aim to supply electricity from Angola – which has an abundance of stranded hydropower – to vital minerals operations in neighbouring countries facing power shortages.

Trafigura signed a non-binding agreement in July 2024 with the Angolan Government and engineering firm ProMarks to conduct feasibility studies.

One industry source said, "Trafigura abandoned the project."

Trafigura has withdrawn from the project, according to a second source within the Angolan Government. The project is still in negotiation and "some changes have been made?regarding consortium members interested in implementing this contract."

The ministry of energy and water did not?respond immediately to questions, and it is?unclear whether the government intends to pursue the project.

When asked if it still supported the project Trafigura, a member of the Lobito Corridor Railway Consortium that transports critical minerals from DRC to Western markets, responded: "No comment".

ProMarks has not responded to any requests for comment.

Other TRANSMISSION Projects to Fill the Gap

Meridia Energy is developing two other transmission lines, a joint-venture between Dubai's Averi Finance, and Morocco's Somagec. These are moving forward and could fill in the gap.

Officials said that the project would connect Angola’s national grid with Kolwezi, which is a strategic hub of DRC’s copper and cobalt mining. It will also link Angola to the Southern African Power Pool, and reinforce the Lobito Corridor.

The project will also strengthen the electricity grid in Angola’s oil-heavy Cabinda Province and connect Soyo City in the north with the DRC.

The project includes a $450 million Soyo Inga Cabinda line, with a?capacity of up to 800MW and a $1.25 billion Lauca - Kolwezi link, with a?capacity of?upto 1,400MW.

Joao Alvares is the chief investment officer of Averi. He said, "We aim to commercially operate both lines by 2030."

Separately U.S. based HYDRO-LINK is planning to build an Interconnector between Angola & the DRC. The goal is to provide reliable, low cost?electricity primarily for the Lualaba & Katanga Mining Provinces.

The project, worth $1.5 billion, would cover approximately 1,200 km (746 miles), and would include five substations. Construction is expected to last about two and half years. (Additional reporting by Wendell Roelf, Editing by Bate and Louise Heavens.)

(source: Reuters)