Jindal Africa, of Indian group Jindal Steel and Power Limited (JSPL), plans to build a power station and sign the corresponding power purchase agreement (PPA) for the sale of electricity in Mozambique by the end of the year, said the company’s president.
Speaking in Cape Town, South Africa, to the Reuters news agency, Ashish Kumar, CEO of Jindal Africa, said the company could begin construction of the power plant immediately after signing the sales contract.
“It is a plant with a 150 MW production capacity, which will take 30 months to build and that has a cost currently estimated at US$400 million,” Kumar added.
The coal mine that the company operates in Mozambique, in Tete province, produces about 3 million tons of coal per year, but there are plans to increase production as soon as world prices begin to rise again.
The Chirodzi mine, which has proven reserves of 700 million tons and an expected life of 25 years, exported its first shipment of coal in the first quarter of 2013. (macauhub/MZ)