18th Nov 2013 10:39
LONDON (Alliance News) - Ncondezi Energy Ltd Monday said it has upgraded its measured coal resource at its mine near Tete in northern Mozambique and is on track to complete its power purchase deal early in 2014.
The thermal coal producer, with operations in Mozambique, said the measured coal resource at its 300 megawatt integrated thermal coal mine and power plant project has been upgraded to 120 million mineable tonnage on site by the company's geological consultant, the Mineral Corporation Consultancy. The resource is well above the 70 million mineable tonnes required to complete the power plant agreement.
The company said that the upgrade follows the completion of an infill drilling programme in September which included the drilling of an additional 33 cored boreholes and three large diameter boreholes.
Ncondezi also said it is on track to complete its final form Power Purchase Agreement with the government of Mozambique by the end of the first quarter 2014 in order to start commissioning the power plant by the second half 2017 and commence commercial operations at the site in the first half 2018.
Last month, Ncondezi signed a non-binding power purchase and transmission deal with Electricidade de Mozambique, the state-owned power utility, to take coal for 25 years from the start of commerical operations.
Ncondezi shares were up 0.8% to 9.70 pence Monday.
By Tom McIvor; [email protected]; @TomMcIvor1
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