ENRC Mozambique negotiates construction of thermal power plant

17 November 2014

Mining company ENRC Mozambique, a subsidiary of the Eurasian Natural Resources Corporation group of Kazakhstan, is negotiating with the government of Mozambique to build a power plant, the company’s representative announced.

Cited by Mozambican newspaper Notícias, José Dai said that the coal-fired plant would provide energy to power the company’s operations, with the remainder sold to Mozambique’s state electricity company or even exported.

ENRC Mozambique earlier this month signed a contract with the government of Mozambique for coal mining in a concession with a area of 23,760 hectares in the district of Cahora Bassa.

The company, which has already spent US$180 million on exploration and announced an investment of over US$800 million in coal mining, expects to mine 25 million tons of coal per year for 25 years.

José Dai said that the project includes production of liquid fuels from coal and production of 120 megawatts of electricity to be sold in Mozambique and possibly to Zambia.

If it goes ahead the power plant will join another plant already announced by Brazilian group Vale and India’s Jindal Steel and Power Limited (JSPL), as well as Anglo-Australian group Rio Tinto, the former concession-holder of the Benga mine. (macauhub/MZ)