Transcript Hon Samuel Russ, Deputy Minister of Land, Mines & Energy

Session 3: Energy & Extractives
A Presentation by
Hon. Samuel Russ
Deputy Minister of Lands, Mines and Energy
Republic of Liberia
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Energy
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Mining
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Oil & Gas
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Concession energy demand is 700MW but current supply less than 20MW creating huge
investment opporunity
Huge returns to possible: Liberia has highest energy tariffs in world (56 cents per kwh)
Hydropower to access huge potential of Liberia’s waterways:
◦ internal renewable water resources are second in West Africa only to Guinea &
Nigeria Mount Coffee hydro power generation - transmission & distribution of power
lines due on stream in December 2016 (up to 70 MW)
Many Investment Opportunities available in:
◦ Biofuels from oil palm and rubber wood – 500 MW Potential
◦ Hydro plants – 1,000 MW Potential on St. Paul, St. John & Lofa rivers
◦ Solar
◦ HFO
◦ Construction of National Power Grid
Clients: 4 million people many of whom rely on generators plus numerous concessions
in agriculture, mining, ports
Central grid due to be connected to West Africa Power Pool in 2018
Micro hydro plant constructed – to
support 3000+ rural connections
-
Basic services restored in Monrovia
- 30,000 connections
- 22 MW installed
- Most electricity self-generated
Cross-border purchase of electricity
from Cote d’Ivoire, expected to
support 20,000+ connections in
areas along border
$1.2 bn worth of projects to be implemented in next 5 years, with funding secured.
Generation
3 X Heavy Fuel Oil (HFO) Plants under
construction – 38 MW capacity (~$60 M)
Mount Coffee Hydro Plant (80 MW) –
Rehabilitation underway( ~$300M)
Generation (Renewable)
$50 M available for development of
renewable energy, especially smallscale hydro and solar (in preparation).
T&D
7 distinct transmission line projects
4 distribution projects (~200,000
connections)
CLSG Line: $500 M
T&D projects in Liberia: ~$250M
WOLOGISI1BT
@36%Fe
TAWANA
62Mt @64%fe
KITOMA 64MT
@61%fe
BAO CHICO
WESTERN
CLUSTER
563Mt
@53%fe
ARCELOR
MITTAL
471Mt@67%fe
CHINA UNION –
1.05 BT
@36%fe
• 3 Age Provinces in Liberia
• Liberian (Archeaen-Meta
Volcanic)
• Eburean Formations
• Pan-African (youngest)
• Iron formation occurs across all
age provinces
GOE-FANTRO
64MT
@59%Fe
PUTU -4.5 BT
@39%Fe
• Iron formation commonly
associated with composite rock
units; schist, mafic, felsic &
ultramafic units
• All major deposits occur within
Liberian & Eburnean provinces
except Goe-Fantro which occurs
within Pan-African
• Gold occurrences are
widespread
Aureus
Mining
• Gold production is dominated
by ASM activities
MNG Gold
• One mechanized gold mine:
Aureus Mining: 1.5Moz
@3.8g/t
• MNG Gold: 750k ounces @13g/t
Hummingbird
• Hummingbird:
• Tuzon 2.47 Moz @1.4 g/t
• Dugbe 1.8 Moz @ 1.3g/t
3 distinct kimberlite diamond clusters have been
identified in Western Liberia:
• Kumgbor cluster ~ 135Ma
• Weasua cluster ~ 800Ma
• Mano Godua cluster ~ 135Ma
Copper, Lead , Barite, Bauxite,
Kyanite, Phosphate, Platinum,
Manganese, Uranium,
Chromite, Corundum, Nickle etc
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Drafting of New Minerals & Mining Law & Regulations
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Separate Mining Law and Regulations to govern Artisanal &
Small-Scale Miners
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Formalization of Artisanal & Small-Scale miners into cooperatives
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2D seismic data (PSTM/PSDM):24,773 km
2D gravity/magnetic data: 24,508km
2D angle stacks: 24,774km
3D seismic data (PSTM/PSDM):18,345km2
3D angle stacks: 18,345km2
Updated Interpretation report (2010)
Well Data from nine recently drilled wells
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Construction of refinery/refineries
◦ Refine petroleum crude oil
◦ Process & purify raw natural gas
Management of Refineries
Marketing & Distribution of crude oil products
Storage & Transportation of crude oil & natural gas
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Reform program almost complete
Establishes investor friendly climate
Reform to measure up to international standards began in 2011
Considered national views & international best practices
Redrafted new E & P law
◦ Creates stable, enhanced legal climate:
 Maintains stable, favorable tax regime
 Clear, predictable rules for licensing, contracts, environmental
& social provisions
 Independent regulator (Petroleum Directorate)
 Enhanced transparency
Developed new model production sharing contract
Thank you!
Hon. Samuel Russ
[email protected]
NIC Focal Person for Investment Inquiries:
Paye Gbelayan: [email protected] +231 886897995