Mozambique is to get a new large-scale coal mine and power plant, as the Ncondezi Coal Company reveals a positive conclusion to its feasibility study, giving the go ahead to the project.

Revealing the results of its Mine Definitive Feasibility Study, the Ncondezi Coal Company has announced that the conclusion of the study points to the viability of a large, long-life open coal pit, which in turn would be linked to an on-going power-production project.

The coal pit – to be located in the Tete province, and is one of the world’s largest undeveloped coal basins – is projected to be viable for the coming 25 years, and will produce extensive supplies of domestic and export grade coal.

Meanwhile, the power plant planned as part of the project is expected to produce an output of 300 megawatts, and is billed to cost in the region of $504 million over the 36 month period necessary to complete construction.  Construction is expected to start by 2014.  Once operational – hopefully by 2017 -, the power plant will sell electricity to the Mozambican grid.

Speaking on the decision to go ahead with the mine and power plant, Chief Executive Officer of Ncondezi, Nigel Wells, said: “Mozambique is the fastest growing electricity market in southern Africa and the largest exporter of power to South Africa. We believe that focusing on a 300MW integrated mine and power plant project as a first phase of development is the best route to bring the Ncondezi project into production by 2017.”

The company has made efforts to assure the Mozambican government that the project will comply with environmental regulations, including air quality rules.

However, Mining Concession approval is still needed from the Mozambican government in order for the mine to become operational, Ncondezi stating it will shortly be submitting an application to the Ministry of Mineral Resources.


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