British group Ncondezi Energy granted mining concession in Mozambique

30 August 2013

Ncondezi Coal Company Mozambique, a subsidiary of British group Ncondezi Energy, has been granted a mining concession in Mozambique for its integrated coal mining and thermal power plant project, the group said in a statement published this week.

The concession granted by the Mining Resources Ministry, which is valid for 25 years, is for the Ncondezi coal deposit, located in the Moatize district of Tete province, relatively close to the coal mines currently operated by Anglo-Australian group Rio Tinto and Brazil’s Vale.

According to the group, the concession, which includes two exploration licenses, covers an area of 251 square kilometres and construction of a 1,800 megawatt thermal power station, to be built in stages of 300 megawatts each.

Unlike other companies and groups that plan to export the coal they mine in Mozambique, the Ncondezi Energy project will use the coal it mines as fuel to produce electricity.

Ncondezi Coal Company Mozambique also signed an agreement with the Mining Resources Ministry, under the terms of which Mozambican state mining company Empresa Moçambicana de Exploração Mineira will be given 5 percent of the company’s capital, another 5 percent will be sold to Mozambican citizens and the company has to spend at least US$5 million on social projects. (macauhub)