African Mining October 2019 | Page 51

MOROCCO: ALLIANCE FOR RENEWABLES Morocco is set to benefit from new hydroelectric energy projects. China Communications Construction Company (CCCC) and the Moroccan company, Platinum Power, are partnering up to develop renewable energy projects on the African continent. South Africa’s Mineral and Resource Energy Minister, Gwede Mantahse. This new partnership opens with a 108 MW hydroelectric project in central Morocco. The construction of this power plant under a public-private partnership (PPP) will be carried out by Platinum Power and China First Highway Engineering Company (CFHEC), a subsidiary of CCCC. It represents an investment of USD300-million. new to our economy, yet with great potential to grow GDP, contribute to the fiscus and create much needed jobs’. SA NEEDS PREDICTABLE POLICY To mitigate the impact of rising electricity prices on the cost of doing business in South Africa, greater use of natural gas is being explored, the minister said. A stable, predictable policy and regulatory framework must be created that will lead to investment and growth in South Africa’s energy sector, says the country’s Mineral Resources and Energy Minister, Gwede Mantashe. Mantashe recently delivered his first energy budget speech in Parliament since the merging of his mineral resources portfolio with that of energy, following South Africa’s general election in May this year. Announcing a budget of R7.44-billion for energy, Mantashe noted that the sector had contributed negatively to overall economic growth in the first quarter of 2019, declining by 6.9% and making a 0.1% contribution to an overall GDP decline of 3.2%. “Despite the present economic climate and stringent allocations, we must ascertain a secure and sustainable provision of energy,” he said. “In this context, [we must] utilise diverse energy resources in sustainable quantities at affordable prices, and mindful of environmental requirements, to support economic growth and development.” Mantashe said work is underway to develop the Petroleum Resources Development Bill ‘to ensure we provide policy certainty for the upstream petroleum sector that is relatively www. africanmining.co.za African Mining Publication The Gas Amendment Bill, he said, intends to leverage available gas resources such as those in the Karoo and the recent discoveries in the Brulpadda field, assisting in the implementation of gas-to-power projects. While most of the country’s current supply of natural gas is from imports via the pipeline of the Mozambique Pipeline Investment Company (ROMPCO), more economical options need to be explored, including acceleration of South Africa’s own natural gas exploration activities. In the meantime, Mozambique will be engaged in the possibility of increasing and extending the supply of gas beyond 2023, and the importation of liquified natural gas (LNG) via the Coega Industrial Development Zone will be implemented. INVESTING IN INFRASTRUCTURE In a recent Q&A with Africa Oil and Power, CEO of African Investment Managers (AIIM), Jurie Swart, says the continent has made huge strides in infrastructure investment. Has AIIM always been involved in the energy sector? AIIM’s original business started life by financing toll roads in South Africa. In later years we started looking at the energy market in South Africa. One part of this market that has done particularly well in the last five or six years has been renewable energy. It’s been a remarkable growth story, and with our latest new solar and wind farm projects, we estimate that AIIM has African Mining African Mining  October 2019  49