Power Project

Ncondezi plans to develop Mozambique’s first coal fired power plant on the Ncondezi mine concession area in the Tete Province in northern Mozambique. This follows the conclusion of both a Mine and Power project Definitive Feasibility Studies ("DFS") which confirmed that a large scale, long life, open pit thermal coal mine and integrated power plant is technically and economically viable.

This large scale project will be developed in phases, starting with a 300MW integrated mine and power plant (the “Project”), with the potential to expand to an 1800MW power plant. The Power DFS was conducted by Parsons Brinckerhoff and independently reviewed by STEAG, one of Germany’s largest electricity producers, from an operator’s perspective.

The power plant will use a modern and proven Circulating Fluidised Bed (“CFB”) technology, which will use state of the art emission control technologies and comply with OECD guidelines and the most stringent IFC/World Bank guidelines for coal power plants.

Coal will be supplied from the development of an adjacent open pit coal mine producing 1.5 million tonnes per annum.

The power plant will be located about 92kms away from the local transmission network.

The Project plans to sell 100% of power generated to Electricity of Mozambique ("EDM") through a 25 year Power Purchase Agreement ("PPA"). This will be supported by a Power Concession Agreement ("PCA") to be negotiated with the Mozambican Ministry of Mineral Resources and Energy ("MIREME").

Ncondezi’s power project has a unique advantage over other potential power projects in the region because it is entirely focused on supplying Mozambique’s growing energy demands over the short to medium term, it can be delivered in a reasonably short time frame and the power plant can be scaled up in 300MW units.

Mozambique is one of the largest generators and exporters of electricity in sub-Saharan Africa and is strategically well positioned, with existing transmission infrastructure, to meet the shortfalls in energy supply domestically and in the broader Southern African Power Pool, especially South Africa, Zimbabwe, Botswana, Malawi, Swaziland and Namibia. The 300MW Project is closely aligned to the Mozambican Government’s stated objective of accelerating the electrification of the country and expanding access to electricity. Currently less than a third of the Mozambican population has access to electricity. The power plant will help Mozambique maximise the potential of its resources in country and will be an important contributor to Mozambique’s future development.

Key Development Milestones Completed:

  • Definitive Feasibility Study - Parsons Brinckerhoff
  • Transmission Route Acceptance - EDM
  • Power Plant Framework Agreement - MIREME
  • Power Offtake Contract Heads of Terms - EDM
  • Power Plant and Transmission Line Environmental and Social Impact Assessment approval - Ministry for the Coordination of Environmental Affairs
  • Power Plant Project Ownership Heads of Terms - MIREME
  • Power Plant Land Access Rights ("DUAT") - Mozambique Government
  • Letter of Support - MIREME
  • Joint Development Agreement - China Machinery Engineering Corporation ("CMEC") and technology partner General Electric ("GE")
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