Vancouver — Halifax-based
The first step of the plan calls for wholly owned subsidiary MagEnergy to participate in the rehabilitation of the INGA hydroelectric facility in the Democratic Republic of Congo (DRC).
MagEnergy recently signed an agreement with Socit Nationale d’lectricit (SNEL), owner and manager of the facility, to rehabilitate four turbines already installed at the INGA II power station on the Congo River.
MagEnergy’s mandate is generate returns from sales of electrical power into existing national and international grids. As part of the deal, power will be made available to a sister company, MagMetals, which plans to develop a magnesium smelter 200 km west of INGA, at the port city of Pointe-Noire in ROC.
The government of the DRC says the INGA rehabilitation plan will supply much-needed power to the nation, as well as to other countries in Central and Southern Africa.
The two stations that comprise the INGA hydroelectric project have an installed potential of 1,774 MW, however present output is only 700 MW, owing to years of low demand and maintenance budgets.
The project has the potential to reach 50,000 MW and plans are on the drawing board for a third low-cost station that could be developed with minimal environmental disruption.
MagEnergy has launched technical studies that will be followed by a bankable feasibility study. The company envisages a staged rehabilitation program, starting with one turbine and leading to the sequential start-up of three others. The goal is to produce energy revenue by 2006, and have all turbines operating by 2009.
MagIndustries will provide the initial funding for the rehabilitation program, and seek additional funding from investors and banks. Meanwhile, subsidiary MagMinerals will develop a 300,000-tonne-per-year potash plant at Pointe-Noire. The fertilizer plant could also produce salt and calcium chloride.
Subsidiary MagMetals is looking to develop a 60,000-tonne-per-year magnesium smelter adjacent to the potash plant. The smelter would produce magnesium alloys for the automotive industry.
Raw materials for both plants would come from MagIndustries’ wholly owned magnesium and potash salt deposits near Pointe-Noire.
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