Mozambique Energy: Ncondezi Energy Ltd presents working document to the Government

Ncondezi Energy Ltd announced that it had submitted the first version of the joint development agreement for a mining project and the construction of a 300 megawatt thermal power plant in Tete, central Mozambique, to the Mozambican government, the company said in a statement released in London.

The companies involved are currently assessing the feasibility of the project, which should be completed by April 2018, with the government having agreed in the meantime to extend the deadline from the end of December to the end of February to sign the contracts for the design, equipment and construction, operation and maintenance.

The Mozambican government also approved the extension from late April to the end of July of the deadline for the final signing of the joint development agreement for the project.

At the beginning of November, Ncondezi Energy Ltd announced it had signed a non-binding document with China Machinery Engineering Corp. and General Electric South Africa (PTY) Ltd for the development of a project in Mozambique.

The signing of the document at a meeting in Beijing followed the announcement on 20 October that the parties had reached agreement in principle on the terms of the non-binding offer.

The non-binding document establishes the basis for negotiations for the development, construction and operation of the project for a 300 megawatt coal-fired thermal power plant and an open pit coal mine in Tete, Mozambique.

A final agreement required China Machinery Engineering Corp and General Electric South Africa to acquire about 60% of the project, with the two companies continuing to be responsible for developing and managing it. (macauhub)