Maputo, Mozambique — ESI-AFRICA.COM — 05 October 2011 – The Mozambican government has authorised the Indian company Jindal Steel and Power to begin studies for the construction of a thermal power station to produce electricity from coal in the central province of Tete.
The power plant would have a capacity to produce 2,640 megawatts (MW) of electricity for the domestic and regional market. According to daily newspaper ‘Noticias’, construction of the power station would cost US$3 billion.
Authorisation for the plant has been formalised here by the signing of an agreement by Mozambican energy minister Salvador Namburete and Jindal vice-president Naveen Jindal.
The thermal power station will be situated between the districts of Sono and Changara, where Jindal has been granted a 25-year mining concession covering 21,540 hectares of land. Projections indicate that the concession will produce 6.6Mtpa of coal, with Jindal investing US$180 million in the mine.
It is predicted that the power station could become operational as soon as 2015 to coincide with the start of coal produced at the Jindal concession.
Two other companies are developing projects to construct thermal power stations in the Tete province of Mozambique. Brazilian mining giant Vele is considering construction of a power station near its massive Moatize coal project, while Australian-based Riversdale Mining is planning to build one at its coal mine in Benga. Each of these projects is looking at producing 2,000MW of electricity.