Ncondezi Coal Co. Plans to add a coal-fired power plant to its coal mining project in Mozambique in order to make further use of the coal it mines in Tete province, the company said in a statement issued Monday in Guernsey.
According to the statement, the company plans to build, in stages, a coal-fired power plant with a capacity of 1,800 megawatts that would be able to produce 300 megawatts of power as of 2017 using unsalable coal.
That power would then be sold on to South Africa, which is facing an electricity deficit.
In the same note Ncondezi Coal Co. Said that it initially planned to mine 4 million tons of thermal coal, half of which would be for export and the other half to be used in the power plant.
Production is scheduled to begin in the second half of 2015 and increase gradually until the company is mining 10 million tons of coal per year.
Last week Ncondezi Coal signed a framework agreement with the Mozambican mining Resources Ministry, which was the second to last step before signing a mining contract that will govern development and the legal framework of the project.
The company’s chief executive, Graham Mascall, said that the agreement set out the parameters and schedule for signing the mining contract for as soon as the definitive feasibility study was handed over to the Mozambican government. (macauhub)