(Alliance News) - Ncondezi Energy Ltd on Monday said it has made progress on negotiations with China Machinery Engineering Corp concerning historical development cost reimbursement for the Tete coal mine and power project in Mozambique.
Agreed project expenditure was USD26.7 million, of which USD21.0 million has been accepted by CMEC, but USD5.7 million relating to senior and project management costs remain under negotiation.
Both parties will finalise the historical development cost once the project power tariff has been approved by Electricidade de Mocambique.
"It is with great pleasure that we update investors on the positive progress regarding agreement of project historical development costs to be reimbursed to the company at financial close. Following an extensive third-party audit review of the company's historical costs over a 10 year period, and following successful negotiations with CMEC, Ncondezi has been able to demonstrate USD26.7 million of historical expenditure on the project," said Chief Executive Officer Hanno Pengilly.
"With this work now complete, the company can focus its resources on the tariff approval process with EDM and finalising the EPC contracts with CMEC early in the new year," Pengilly added.
Shares in Ncondezi Energy were up 9.1% at 6.00 pence on Monday in London.
By Dayo Laniyan; dayolaniyan@alliancenews.com
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