Indian group Jindal Steel & Power plans to build coal-fired power plant in Mozambique

4 October 2011

Maputo, Mozambique, 4 Oct – The Mozambican government has authorised Indian group Jindal Steel & Power to launch studies for construction of a coal-fired power plant in Tete province, Mozambican daily newspaper Notícias reported.

The power plant is expected to produce 2,640 megawatts of electricity, which will be sold to the domestic and regional markets, and the cost of the project is expected to be US$3 billion, under the terms of an agreement signed in Maputo by the Energy Minister, Salvador Namburete, and the vice president of the Indian company, Naveen Jindal.

The coal-fired power plant is set to be located in the districts of Songo and Changara, in Tete province, where Jindal was granted a mining concession for a 25-year period to mine 21,540 hectares expected to produce 6.66 million tons of coal per year and where the company is expected to invest US$180 million.

Notícias cited a spokesperson as saying that the power plant was due to start operating in 2015, which was also when the Indian company was expected to start mining coal at its concession.

“Jindal should start producing thermal coal in 2015 and, because this product cannot be stored for a long time in high volume, we have to ensure that at that time the power plant will be operating so that the coal can be used,” the spokesperson said.

As well as Jindal, two other companies are developing projects for construction of coal-fired power plants in Tete: Brazil’s Vale, which plans to build the Moatize power plant and Riversdale Mining (Rio Tinto), which plans to build the Benga Power Plant, each of which will produce 2,000 megawatts of electricity. (macauhub)