By Ian Walker

 

Shares in Ncondezi Energy Ltd. fell 15% on Monday after the company said that it is awaiting further clarity on China's position relating to financing coal projects abroad before progressing with the Tete, Mozambique power project tariff.

The African power-development company said the availability of Chinese financing for coal-power projects abroad is critical for the project and that it is ready to proceed with the tariff once this has been addressed.

"We understand this to be a global issue affecting all Chinese backed coal power development projects abroad, and that this impact is under review by the relevant Chinese authorities," the company said.

Ncondezi added that its partner, China Machinery Engineering Corp., remains committed to the project and continues to lead the financing process.

In the meantime, the company said it has started a cash-conservation strategy to extend its working capital past the first half of this year so that it doesn't need to raise extra funds in the immediate future.

Shares at 1335 GMT were down 0.12 pence at 0.73 pence.

 

Write to Ian Walker at ian.walker@wsj.com

 

(END) Dow Jones Newswires

January 17, 2022 09:09 ET (14:09 GMT)

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