Australia’s Riversdale Mining negotiates sales of power produced in Benga, Mozambique

27 July 2010

Maputo, Mozambique, 27 July – The project for construction of a power plant associated to the mineral coal mine at Benga in Mozambique’s Tete province is now at the stage of negotiations with potential power consumers, according to Mozambican newspaper Notícias.

Citing a source from Australian company Roversdale Mining, the paper reported that negotiations were at quite an advanced stage and are expected to be concluded by next October at the latest.

The Australian company, which is the concession-holder of the Benga mines, said it had concluded the studies that confirm the economic and environmental feasibility of the coal-fired power plant, which is initially expected to cost US$1.3 million.

Figures provided by the source showed that, initially, the Benga power plant would produce 500 megawatts of energy using around 1.3 million tons of coal, with capacity expected to increase by 2014.

Negotiations with future consumers of power from Benga began after the Australian company was authorised, last year, by the Mozambican government to carry out the power plant project, which is to use coal that cannot be exported.

A source from the Mozambican government told the newspaper that the Benga power plant would contribute to increasing the country’s power generation capacity and that it would require greater efforts from the Government to find investors that want to develop industries whose operation depends on a constant power supply. (macauhub)