Trafigura has withdrawn from a proposed 2,000-megawatt power transmission project that would have carried surplus Angolan hydropower to electricity-starved copper and cobalt mining operations in the Democratic Republic of Congo and Zambia, according to industry and government sources cited by Reuters.
The project was announced in July 2024 through a non-binding agreement between Trafigura, engineering firm ProMarks and the Angolan government. It was designed to monetise Angola’s abundant but largely underutilised hydropower capacity while addressing chronic power shortages that constrain mining output across Central and Southern Africa.
One industry source said Trafigura had ‘abandoned the project,’ while a second source within the Angolan government confirmed the commodity trader’s exit, adding that discussions are continuing with a revised consortium of companies interested in taking the initiative forward.
Angola’s Ministry of Energy and Water has not commented publicly on the withdrawal, leaving the project’s future in doubt. Trafigura — which is also a key member of the Lobito Corridor railway consortium that transports critical minerals from the DRC to global markets — declined to comment.
Despite the setback, other significant cross-border electricity ventures are advancing in the region. Meridia Energy, a joint venture between Dubai-based Averi Finance and Morocco’s Somagec, is developing two transmission lines that would connect Angola’s national grid to Kolwezi, the DRC’s primary copper and cobalt mining hub, while also reinforcing Angola’s domestic grid and linking it to the Southern African Power Pool.
The Meridia projects comprise the $450 million Soyo–Inga–Cabinda transmission line, capable of delivering up to 800 MW, and the $1.25 billion Lauca–Kolwezi line, with a capacity of 1,400 MW. Averi has said both lines are targeted to reach commercial operation by 2030.
Separately, US-based HYDRO-LINK is pursuing a $1.5 billion interconnector between Angola and the DRC. The 1,200-kilometre project is intended to supply reliable, low-cost electricity to the DRC’s Lualaba and Katanga mining provinces, further reinforcing the regional energy infrastructure that underpins Africa’s expanding critical minerals industry.
The flurry of competing proposals reflects growing recognition that Angola’s hydropower surplus — generated largely from dams along the Kwanza River, including the 2,070 MW Lauca facility — could serve as a strategic energy export to resource-rich but power-deficient neighbours, supporting mining investment across the region at a time of heightened global demand for battery metals.
Source: Business Insider Africa
