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23 Jul 2019 | 13:23

Ncondezi Energy inks development pact with China Machinery, GE for Mozambique project

Ncondezi Energy said it had inked an agreement with China Machinery Engineering Corporation and General Electric to develop a $1bn coal mine and accompanying power plant in Mozambique.

Ncondezi said it was expected to hold a 40% equity interest in the project, which would count the Chinese company as its main engineering, procurement and construction contractor.

GE would would be the exclusive subcontractor for power project core technology, including a boiler, steam turbine, generator, and air quality control solutions.

The US engineering giant would also supply the required parts and serve as a field advisor for power plant maintenance.

The partners would will now finalise and agree the joint development program to financial close, with a focus on achieving development co-funding conditions.

Doing so would involve submitting an updated electricity tariff to the African nation's state power utility and opening up tariff negotiations over the next six months.

The tariff and power sales process was expected to leverage off existing development work completed and not require material external cost to the company, Ncondezi chairman Michael Haworth said.

'Whilst key milestones are still to come, the joint development agreement is an important step towards the goal of generating power in 2023,' Haworth said.

At 1:23pm: (LON:NCCL) Ncondezi Energy Limited share price was +2.35p at 9.4p

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