British group Ncondezi Energy Limited has signed a non-binding agreement with China’s Shanghai Electric Power Company (SEPC), for operation of a power station in Mozambique, according to a statement issued Monday.
The British group, which operates a coal concession in Tete province, central Mozambique, also said that the agreement will allow SEPC to become the largest shareholder in the coal-fired station, with a potential to generate 300 megawatts, that the group intends to build in Tete province.
The Shanghai Electric Power Company Limited is a listed on the Shanghai Stock Exchange and is majority-owned by the China Power Investment Corporation, one of the biggest in the industry in China with a power production capacity of 90,000 megawatts.
The non-binding agreement stipulates that the parties will draw up a schedule to establishment a formal partnership in the current quarter.
According to the statement, Shanghai Electric Power Company Limited will take a minority stake in the Ncondezi Project coal mine.
The British group owns 100 percent of the Ncondezi Project and has been involved in the development of a coal-fired power station with an initial capacity of 300 megawatts and a future full capacity of 1,800 megawatts. (macauhub/CN/MZ)