Britain’s Ncondezi Coal signs framework agreement with Mozambican government for power plant

26 April 2013

British company Ncondezi Coal has signed a framework agreement with the Mozambican government to guide the relationship between both parties for the construction project of a coal-fire power plant, the company said in a statement issued Thursday in London.

The framework agreement outlines the responsibilities of both the Mozambican government and Ncondezi Coal as well as the schedule for the project showing that by 2017 the company will launch the first of two phases for production of 600 megawatts of electricity.

Ncondezi Coal now has 364 days to establish a number of details about the project, including the sale to credible partners of all or part of the power produced as well as transmission of the electricity.

Ana analyst from FoxDavies cited by the international press said that Ncondezi Coal had taken a step in the right direction by giving up on the idea of being a coal exporter and becoming a domestic power supplier.

This year, the director of Ncondezi Coal, David Eshmade said that work to build the coal-fired power plant in the northern region of the Moatize district, in Mozambique’s Tete province, is due to begin in March 2015.

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. (macauhub)