Jing Ji Guan Cha Wang·2025-08-27 08:54Core Insights - The local power supply in the Democratic Republic of the Congo (DRC) is insufficient to meet the growing energy demands of the mining industry, leading to frequent power outages and limitations on production [2][4][5] - The KFM copper-cobalt mine, operated by Luoyang Molybdenum, has a production capacity of over 650,000 tons of copper annually and is exploring alternative power sources to ensure stable operations [2][8] - The DRC-Zambia copper-cobalt belt is the largest sedimentary copper-cobalt mineralization area globally, with significant reserves of copper and cobalt [2] Power Supply Challenges - Since 2021, local mining capacity has surged from 1 million tons to over 3 million tons, but the power grid cannot support this demand [3] - The copper and cobalt extraction processes are highly energy-intensive, with electricity consumption accounting for 60%-70% of the production process [3][7] - The DRC's electricity generation heavily relies on hydropower, with installed capacity increasing from 2,700 MW in 2021 to approximately 3,200 MW in 2023 [3] Mining Operations and Costs - Mining companies are facing challenges due to the inability to secure hydropower, leading to reliance on costly diesel generators and solar storage systems [5][10] - The cost of electricity for mineral development accounts for 20%-30% of total operating costs, with metal mining electricity costs ranging from 15%-25% [7] - Luoyang Molybdenum's KFM mine reported a revenue of approximately 31.4 billion yuan in the first half of the year, with a projected annual revenue of 50.6 billion yuan for 2024 [8] Equipment and Maintenance - KFM has implemented a strategy to optimize equipment selection and develop production plans based on varying power loads to mitigate the impact of power outages [11][12] - The mine has procured 13 diesel generators to ensure power supply during outages, with diesel generation costs being 2-3 times higher than normal electricity costs [10] - Equipment management includes maintaining a safety stock of critical components and utilizing local production capabilities to reduce operational costs [16] Talent and Training - There is a significant shortage of skilled personnel for operating electrical equipment in the DRC, necessitating the import of both equipment and expertise [17][18] - Luoyang Molybdenum is investing in local talent development through training programs led by Chinese technical staff [18] Future Developments - To address long-term power supply issues, Luoyang Molybdenum is constructing a 200 MW hydropower station near the mining area, expected to begin operations in 2028 [18]