Ncondezi is developing an integrated thermal coal mine and 300MW power plant, located in the Tete Province of Northern Mozambique, to supply electricity to the Northern Grid. The project is approximately 85km from the existing power transmission grid. The Company is targeting commissioning of the power plant in H2 2017 and commercial operations in H1 2018.
The Ncondezi Project has gained significant momentum over the past seven months, since signing the Power Framework Agreement with the Government of Mozambique in April 2013, with the granting of a Mining Concession, approval of both the mine and power plant Environmental Social Impact Assessments and the signing of the Coal Supply Agreement Heads of Terms and the Power Purchase and Transmission Agreement Heads of Terms. The Final Form Power Purchase Agreement and the Power Generation Concession are anticipated in Q1 2014 and financail close of the Project is targeted by the end of 2014.
The development of the Ncondezi Project will see a substantial investment into the Tete Province, generating domestic revenue streams, stimulating regional development, creating employment opportunities and strengthening and diversifying the country’s production base.