Conveyor system leading
to the portal at the
Ncondezi coal mine
in Mozambique
London, England — 30 April 2013 – British company Ncondezi Coal has signed a framework agreement with the government of Mozambique to guide the relationship between both parties for the construction of a coal-fired power plant in the country.

The company said in a statement issued here that the framework agreement outlined the responsibilities of both the Mozambican government and Ncondezi Coal as well as the schedule for the project, reports Macauhub News Agency. The schedule shows that by 2017 the company will launch the first of two phases for production of 600 megawatts (MW) of electricity.

Ncondezi Coal now has 364 days to establish a number of details about the project, including the sale to credible partners of all or part of the power produced, as well as transmission of the electricity.

An analyst from FoxDavies cited by the international press said that Ncondezi Coal had taken a step in the right direction by giving up on the idea of being a coal exporter and becoming a domestic power supplier.

This year, Ncondezi Coal director David Eshmade said that work to build the coal-fired power plant in the northern region of the Moatize district, in Mozambique’s Tete province, was due to begin in March 2015.

Speaking to daily newspaper Notícias, Eshmade added that the power plant would be built near the mine and approximately 95km from the national grid’s power transmission line leading from the Cahora Bassa hydroelectric dam.

The Ncondezi Coal Company owns 100% of the 804L and 805L licences, known as the Ncondezi Project, in the Moatize district, and the project has estimated resources of 4.7 billion tonnes of coal.

Source: Macauhub News Agency. For more information, click here.