Construction of Ncondezi Coal thermal power plant in Mozambique due to begin in March 2015

7 February 2013

Work to build a coal-fired power plant owned by mining company Ncondezi Coal in the northern region of the Moatize district, in Mozambique’s Tete province, is due to begin in March 2015, said the company’s managing director, David Eshmade.

Speaking to daily newspaper Notícias, Eshmade also said that the power plant would be built near the mine and approximately 95 kilometres from the national grid’s power transmission line leading from the Cahora Bassa Hydroelectric Dam.

The Ncondezi Coal Company owns 100 percent of the 804L and 805L licenses known as the Ncondezi Project, in the Moatize district, and the project has estimated resources of 4.7 billion tons of coal.

The Ncondezi Coal Company mine is located around 25 kilometres from the Sena railroad, which ends at the town of Moatize, and two types of thermal coal will be mined there that are considered to be ideal for Asian markets and are comparable to international benchmark types of coal, such as Newcastle high ash Australian coal and Shanxi blended coal from China.

Eshmade said that the company was considering four routes for exporting its coal production, with a short term strategy focused on gaining access to the two existing railway corridors to the ports of Beira and Nacala to meet the needs of the first stage of production.

As a long term option, Eshmade said there was a possibility of a new rail and port project, and that an agreement had already been made with the Rio Tinto group, which is carrying out studies for this project in order to transport the coal mined in Tete province. (macauhub)