Shanghai Electric Power (SEP) has signed a joint development agreement with Ncondezi Energy to develop a series of projects in Mozambique. A power plant will be developed in six 300 MW phases, giving eventual generating capacity of 1.8 GW. It will be supplied with feedstock by Ncondezi’s coal mines in Tete Province, helping to make the firm’s wider mining plans commercially viable.
Apart from helping to fund development costs, SEP will pay US$25.5M for a 60% stake in the power plant. UK-based Ncondezi hopes to supply other customers elsewhere in Mozambique, as well as exporting coal. SEP, which is mainly owned by the Chinese government, will also help to construct the railway line from the mine to the power plant.
Plans for another power plant in the Moatize area suggest that the Benga coal field will finally be developed. India’s International Coal Ventures Ltd (ICVL) has launched a tender for the contract to build and operate a coal-fired plant at its Benga mine, with a 3 March deadline for submissions. Initial generating capacity will be 200 MW, but the plant is being developed to allow this to be increased in stages to 2 GW.
The power will be used at the mine, which was bought from Rio Tinto, and supplied to the national grid. Low quality coal that cannot be exported will be used as feedstock in the short term. Coal production of 5.2 Mtpa is planned by 2017, ramping up eventually to 11 Mtpa, but this will depend on a recovery in international coal prices.