Indian consortium announces construction of thermal power plant in Mozambique

20 November 2014

India’s ICVL consortium will build a coal-fired thermal power plant in Mozambique once it secures buyers for the electricity produced, said the chief executive of ICVL, Ajay Mathur.

Mathur, who declined to give further details on the plant told financial news agency Bloomberg financial news agency that it would be built “as soon as the sale of electricity is guaranteed.”

The power plant, to be built in Tete province, is one of several investments that are being made in this northwestern area of Mozambique, where the largest reserves of coal are located as well as the Cahora Bassa hydroelectric facility, which serves Mozambique, Africa South, Zimbabwe and Zambia.

However, on 24 November is due to receive its first shipment of coal mined in Mozambique, specifically at the Benga mine in Tete province.

Last July, ICVL, a consortium of the Indian state companies Coal India, Steel Authority of India, National Thermal Power Corporation (NTPC), National Mineral Development Corporation (NMDC) and Rashtriya Ispat Nigam Limited (RINL), signed an agreement to pay US$50 million for a 65 percent stake in the Benga mine and 100 percent of the Zambeze and Tete Oriental mines from Anglo-Australian group Rio Tinto, which had originally paid US$3.7 billion for the assets.(macauhub/MZ)