Australia’s Riversdale Mining soon to order engineering project for thermal power plant in Mozambique

21 February 2011

Maputo, Mozambique, 21 Feb – Australian group Riversdale Mining has hired two companies in Mozambique to design the engineering project for the Benga coal-fired power plant in Tete province, a company source told Mozambican newspaper Notícias.

According to the paper, the source said that the power plant would start producing electricity between 2013 and 2014.

The source said that the project, initial investment in which totals some US$1.25 billion, was at an advanced stage and had received strong support from the Mozambican government, including environmental approval and signing of a memorandum of understanding with power company Electricidade de Moçambique (EDM) for access to and transmission of the electricity.

Initially the Benga power plant is expected to produce between 500 and 600 megawatts of electricity, which will be followed by an expansion to 2000 megawatts, in line with the project for the transmission line to link the centre and south of Mozambique.

The electricity in phase 1 will be distributed via the national grid, with a portion of it consumed by Riversdale’s Benga and Zambezi mining projects. The power plant will be fired by coal from the Benga mine, which is currently being developed and which will start producing its first coal in the third quarter of this year.

Riversdale, which has been in Mozambique since 2006, is involved in several areas, the most important of which is Benga with estimated reserves of 4.4 billion tons, with expected extraction of up to 22 million tons of mineral coal per year. (macauhub)