Session 3: Energy & Extractives

A Presentation by A Presentation by

Hon. Samuel RussHon. Samuel RussDeputy Minister of Lands, Mines and EnergyDeputy Minister of Lands, Mines and Energy

Republic of LiberiaRepublic of Liberia

Energy

Mining

Oil & Gas

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

- Basic services restored in Monrovia-30,000 connections-22 MW installed-Most electricity self-generated

Micro hydro plant constructed – to support 3000+ rural connections

Cross-border purchase of electricity from Cote d’Ivoire, expected to support 20,000+ connections in areas along border

Generation3 X Heavy Fuel Oil (HFO) Plants under construction – 38 MW capacity (~$60 M)Mount Coffee Hydro Plant (80 MW) – Rehabilitation underway( ~$300M)

T&D7 distinct transmission line projects4 distribution projects (~200,000 connections)CLSG Line: $500 MT&D projects in Liberia: ~$250M

$1.2 bn worth of projects to be implemented in next 5 years, with funding secured.

Generation (Renewable)$50 M available for development of renewable energy, especially small-scale hydro and solar (in preparation).

WOLOGISI-1BT

@36%Fe

WESTERN CLUSTER

563Mt@53%fe

CHINA UNION – 1.05 BT@36%fe

GOE-FANTRO 64MT

@59%FePUTU -4.5

BT @39%Fe

KITOMA 64MT@61%fe

ARCELOR MITTAL

471Mt@67%fe

TAWANA62Mt

@64%fe

BAO CHICO

• 3 Age Provinces in Liberia • Liberian (Archeaen-Meta

Volcanic)• Eburean Formations• Pan-African (youngest)

• Iron formation occurs across all age provinces

• 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

• Gold production is dominated by ASM activities

• One mechanized gold mine: Aureus Mining: 1.5Moz @3.8g/t

• MNG Gold: 750k ounces @1-3g/t

• Hummingbird:• Tuzon 2.47 Moz @1.4 g/t• Dugbe 1.8 Moz @ 1.3g/t

Aureus Mining

MNG Gold

Hummingbird

Copper, Lead , Barite, Bauxite, Kyanite, Phosphate, Platinum, Manganese, Uranium, Chromite, Corundum, Nickle etc

3 distinct kimberlite diamond clusters have been identified in Western Liberia:•Kumgbor cluster ~ 135Ma•Weasua cluster ~ 800Ma•Mano Godua cluster ~ 135Ma

Drafting of New Minerals & Mining Law & Regulations

Separate Mining Law and Regulations to govern Artisanal & Small-Scale Miners

Formalization of Artisanal & Small-Scale miners into cooperatives

TECHNICAL SERVICES DIVISIONNATIONAL OIL COMPANY OF LIBERIA

ULTRA-DEEP BLOCKS

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

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

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 Russsgargar2002@yahoo.com

NIC Focal Person for Investment Inquiries:Paye Gbelayan: payesgbelayan@yahoo.com +231 886897995