The viability study of the Mozambican concession of Ncondezi Coal Co. has concluded that the project is viable in both technical and economic terms through exploration of an open air coal mine that is capable of supporting a coal-fired power plant, the company said in a statement issued Tuesday.
In the statement, the company’s chairman, Nigel Walls, said that Ncondezi Coal would start mining the concession in phases rather than starting on a large scale immediately, which would require large amounts of capital.
“We believe that we should focus initially on exploration of the mine and construction of a thermal power plant with a production capacity of 300 megawatts, and the project is due to launch production in 2017,” Walls said.
Walls said that the 300 megawatt power plant, the power from which will be exclusively consumed in Mozambique, may be expanded in the future to a maximum of 1,800 megawatts.
According to Walls, in 2013 Ncondezi Coal will seek to optimise its capital expenditure on the power plant project and in the second half of the year will start negotiating to secure funding to develop the joint coal mining and power generation project. (macauhub)