The Ncondezi Coal company and Mozambique’s Mineral Resources Ministry signed on Friday a cooperation agreement concerning development of the company’s project in Tete province.
A statement released by the company, quoted on the Alternative Investment Market of the London Stock Exchange, indicates that the agreement precedes the signing of a mining contract that will set conditions for developing the project, in which US$376 million will be applied.
“The signing of this agreement is very important because it sets parameters and a calendar for signing the mining contract when the definitive feasibility study is submitted to the ministry,” said the company’s executive president, Graham Mascall.
The project involves an open-air steam coal mine with anticipated production of 10 million tonnes per year. Reserves are estimated at 4.7 billion tonnes.
Ncondezi Coal announced last April that it was seeking a strategic partner for this project. The first coal extraction is forecast for late 2014 or early 2015. (macauhub)