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DR Congo: Electricity Regulator Allows China Railway Subsidiary to Diversify Power Suppliers

DR Congo: Electricity Regulator Allows China Railway Subsidiary to Diversify Power Suppliers

The electricity regulator (ARE) has granted Compagnie Minière Luisha (COMILU) eligible customer status. This allows the firm to have other power suppliers, besides the country’s power utility, the SNEL, for three years. The visa was officially granted on December 23, 2024, by Sandrine Mubenga Ngalula, General Manager of ARE. COMILU is 78% owned by China Railways Group Limited.

The eligible customer status is governed by the Electricity Act and a ministerial order issued by the Minister of Water and Electricity. It can be granted to any consumer that meets one of two criteria: having an installed capacity of over one megawatt or an annual consumption exceeding 5 gigawatt-hours for non-residential electricity use.

For now, it is unknown if COMILU will leverage its new status to import electricity or buy power from China Railway’s subsidiaries.

China Railway Group has been operating in the DRC since 2008 and is also involved in the Sicomines joint venture, a strategic partnership with the DRC. The company's subsidiaries, particularly COMILU, focus on producing copper cathodes; this requires substantial and consistent energy. However, the SNEL often struggles to meet these energy demands. As a result, mining operators often have to produce or import the needed input.

At a recent Makutano business forum that gathered experts from the DRC and beyond, the SNEL's director noted that mining companies spend nearly a billion dollars annually to compensate for the State’s energy deficits.

The sum represents a significant loss of opportunity for local electricity production in the DRC and is expected to continue rising. In 2024, 11 other companies, including major players such as Kamoa Copper (operated by Ivanhoe Mines), also received eligible customer status. This development allows these companies to diversify their electricity suppliers further, potentially reducing demand for locally generated electricity.

Georges Auréole Bamba

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