LONDON (Alliance News) - Ncondezi Energy Ltd Friday said it has initiated a binding bid process to appoint a mining contractor to provide design, engineering, commissioning, operation and maintenance of the Ncondezi coal mine.
The thermal coal producer with operations in Mozambique said the contract will include the development of plans for the coal processing plant, associated coal handling facilities and infrastructure at the site.
The company said 11 firms have submitted expressions of interest following site visits, and binding bids are due before the end of the first quarter.
Ncondezi said the contractor will provide the company with a binding input coal price for its coal sales agreement between the mine and power station, which will form a key part of the Final Form Power Purchase Agreement between Ncondezi power station and Electricidade de Mozambique.
The company said the final form coal sales agreement is targeted for completion by the end of the first quarter 2014.
Ncondezi said that mining operations will now commence within the south block of its concession, which covers 200 hectares and has the resources to provide coal to its 2x150 megawatt power station for a period of 25 years at least.
The company expects an average annual production of 1.5 million tonnes of domestic grade coal, a life of mine average strip ratio of 0.61 bank cubic meter tonne and a life of mine average yield of 92%.
Ncondezi shares were up 2.2% to 5.88 pence Friday.
By Tom McIvor; tommcivor@alliancenews.com; @TomMcIvor1
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