3rd May 2018 12:04
LONDON (Alliance News) - Ncondezi Energy Ltd on Thursday said study results for its Tete coal and power project have improved its potential economic viability.
Ncondezi is hoping to build two 150 megawatt power plants, and open pit coal mine, and a two kilometre conveyor at Tete, in Mozambique, as well as general infrastructure around the site.
An initial review, Ncondezi said, shows there is the potential do deliver a more competitive power tariff to Electricity de Mozambique and the country's Ministry of Mineral Resources & Energy.
The integrated financial model is currently under review by possible partners, and it hopes to complete it by May, and it will then be submitted to authorities to seek a new power tariff envelope.
Non-Executive Chairman Michael Haworth said: "Although still at an early stage, the preliminary results from the updated engineering, procurement, and construction and operations and maintenance information in the financial model are positive and allude to the potential for delivery of a more competitive tariff to the Mozambican Government and EDM for approval.
"This also represents a significant milestone in the project development process as the company did not reach this stage of development with its previous potential partner."
Shares were down 1.9% on Thursday at 7.70, having initially risen to 9.98p in early trading.
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