Maputo, Mozambique, 7 Jan – Australian company Riversdale Mining said Thursday it had reached an agreement to acquire Elgas’ stake in the Benga thermal power plant, in Mozambique’s Tete province.
Riversdale Mining is involved in a partnership with Indian group Tata Steel to explore and open air mine in Benga and whilst the metallurgical coal from the mine will mainly be exported, the thermal coal Would be used to fire a power plant.
Under the terms of the agreement reached with Elgas, in which it will have an option to buy 50 percent of the company itself, the Riversdale Mining/Tata Steel partnership will own 100 percent of the future Benga Power Plant.
When it starts operating, which is expected to happen in 2013 or 2014 – two or three years after coal mining begins and with an estimated investment of US$1 billion – the Benga Power Plant in its first phase is expected to produce 500 to 600 megawatts of power, which will be increased in future expansions to 2,000 megawatts.
Elgas is a partnership with headquarters in Maputo between south African groups Eskom Enterprises, Mozambican power company Electricidade de Moçambique, Mozambican oil and gas company Empresa Nacional de Hidrocarbonetos de Moçambique, African Legend and Consultinvest, and its business is focused on supplying electricity to Vilanculos and the Bazaruto archipelago. (macauhub)