https://www.miningweekly.com

Ncondezi power project in Mozambique nears JDA completion, financial close

11th June 2018

By: Marleny Arnoldi

Online News Editor

     

Font size: - +

The joint development agreement (JDA) for Aim-listed Ncondezi Energy’s integrated 300 MW power and coal mine project in Tete, Mozambique, is nearing completion.

The company on Monday reported that its integrated financial model (FM) has been accepted by potential partners and company stakeholders for submission to Mozambican energy company Electricidade de Moçambique and Mozambique’s Mineral Resources and Energy Ministry.

This submission is targeted for mid-June to seek in-principle support for a new power tariff envelope thereafter.

The FM represents a key milestone in confirming the project economics, restarting tariff negotiations and completing the JDA process, said Ncondezi.

“Positive results from the FM indicate that project economics can be maintained with more than 10% reduction in the previously agreed tariff envelope.”

“A reversed tariff proposal strengthens the commercial negotiating position of the project,” the company stated.

The FM finds the project could have financial benefits for Mozambique including between $1.1-billion and $1.4-billion in tax receipts and royalties over the life of the project.

The coal-fired project is expected to start delivering power into the grid in 2022.

Edited by Chanel de Bruyn
Creamer Media Online Managing Editor

Article Enquiry

Email Article

Save Article

Feedback

To advertise email advertising@creamermedia.co.za or click here

Showroom

Schauenburg SmartMine IoT
Schauenburg SmartMine IoT

SmartMine IoT has been developed with the mining industry in mind, to provides our customers with powerful business intelligence and data modelling...

VISIT SHOWROOM 
Alco-Safe
Alco-Safe

Developed to exceed the latest EN 15964 standards for police breathalysers proving that it will remain accurate and reliable for many years to come.

VISIT SHOWROOM 

Latest Multimedia

sponsored by

Option 1 (equivalent of R125 a month):

Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format

Option 2 (equivalent of R375 a month):

All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.

Already a subscriber?

Forgotten your password?

MAGAZINE & ONLINE

SUBSCRIBE

RESEARCH CHANNEL AFRICA

SUBSCRIBE

CORPORATE PACKAGES

CLICK FOR A QUOTATION







sq:0.054 0.853s - 111pq - 3rq
Subscribe Now