Zambia’s investment agency has issued an investment license to an Australian firm that has partnered with a local company for the construction of another oil refinery plant and pipeline, the Zambia Daily Mail reported on Thursday.

oil refinery
oil refinery

The Zambia Development Agency (ZDA) has issued an investment license to Maysen and Borowski Claymont Joint Venture (MBCJV) and Phoenix Materials and Constructing Company of Zambia for the construction of an oil refinery and pipeline at a cost of 1.9 billion U.S. dollars.

Phesto Musonda, chairman of Sub-Sahara Gemstone Exchange Industrial Park where the oil refinery plant will be constructed in Kitwe city on the Copperbelt Province said the project was on course following the signing of a joint venture agreement.

The government, he said, has since approved for the conducting of a bankable feasibility study and that talks with different partners to set up a special purpose vehicle to move the project forward were currently underway.
The new oil refinery was very catalytic to diversifying the national economy due to many bi-products expected from the implementation of the project, he added.

The construction of the oil refinery was expected to have a capacity to process about 5 million tons of crude oil annually. It will be fed with crude oil through a new pipeline that will be built alongside the 1,800 kilometers Tanzania Zambia Mafuta (TAZAMA) pipeline from Dar-es-Salaam in Tanzania.

Currently, Zambia only has one oil refinery plan, Indeni Oil Refinery which produces 24,000 barrel of fuel per day but was prone to frequent closures due to archaic equipment and lack of investment to modernize the plant. Enditem

Source: Xinhua

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