$2 billion required to recapitalise Indeni

KABANDA CHULU, Cape Town, South Africa
THE recapitalisation of Indeni Petroleum Refinery, including expansion of the plant capacity, requires about US$2 billion, Industrial Development Corporation (IDC) group chief executive Mateyo Kaluba has said.

Indeni is the only refinery in the country and has a semi-monopolistic status with a processing capacity of 25,000 barrels (one barrel equal 156 litres) of crude oil (co-mingled) per day, and its design was based on an annual throughput of 1.1 million tonnes based on 330 stream days of production.

But due to a reduced heavy fuel market that resulted in increased spiking of crude oil and other factors, the refinery’s value has kept shrinking and its production capacity reduced to about 600,000 tonnes per year.
In an interview at the just-ended Investing in African Mining Indaba, Mr Kaluba said Government is…

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