Mozambique: Australian company to build US$2 billion thermal power plant in Tete

7 July 2008

Maputo, Mozambique, 7 July – Australian company Riverdale Mining in 2009 plans to start construction of a coal-fired power station expected to cost US$2 billion, in the northeast Mozambican province of Tete, the company’s director for Mozambique, Syd Parkhouse said.

Parkhouse told Mozambican newspaper Notícias that the feasibility study for the project, which will have a production capacity of 500 megawatts, would be ready by the end of this year, and work is scheduled to be concluded within three years.

According to Parkhouse, Riversdale Mining has been granted a license for coal mining in 29,080 hectares of Tete province, an area which according to him has a higher concentration of coal than the Moatize area, granted to Brazil’s Companhia Vale do Rio Doce Moçambique.

He also said that the US$2 billion needed to build the new plant in Tete would be provided by foreign banks and international financial institutions, and that most of the electricity produced would be exported to South Africa, Zimbabwe, Malawi an Zambia.

Parkhouse did not rule out the possibility of power from the new plant also being sent to other countries in the Southern Africa Development Community (SADC), such as Namibia and Botswana.

For this project Riversdale has gone into partnership with Indian group Tata Steel, the world’s sixth largest steel producer, under the terms of which the Indian group has a 35 percent stake. (macauhub)