Ncondezi Energy Limited Project Update (4103I)
November 26 2018 - 2:00AM
UK Regulatory
TIDMNCCL
RNS Number : 4103I
Ncondezi Energy Limited
26 November 2018
News Release
Project Update
26 November 2018: Ncondezi Energy Limited ("Ncondezi" or the
"Company") (AIM: NCCL) provides an update on its process to
conclude a binding Joint Development Agreement ("JDA") for the
Company's integrated 300MW power and coal mine project in Tete
Mozambique (the "Project").
The Company has finalised the work program and timetable for the
Project with its potential strategic partners and submitted it to
the Liaison Committee which includes representatives from the
Ministry of Mineral Resources and Energy ("MIREME") and Mozambican
state power utility Electricity de Mozambique ("EDM"). The work
program and timetable includes the following key milestones and
target dates:
-- JDA - Q1 2019
-- Binding engineering, procurement, and construction ("EPC")
and operations and maintenance ("O&M") contracts - Q1 2019
-- Signing of key commercial agreements: Power Purchase
Agreement and Power Concession Agreement - Q1 2020
-- Financial Close - H1 2020
-- Commercial Operations Date - H1 2023
The timetable has been designed to fit with EDM's generation
plan which includes coal fired power to be produced in the Tete
region by 2023. The generation plan is based on EDM's 10 year
strategy, published earlier in 2018, and is in line with the
Mozambican Government's Electricity Master Plan 2018-2043 which was
approved on 16 October 2018. The Mozambican Government is targeting
universal access to electricity by 2030 and this includes up to
1,350MW of potential coal fired power generation.
The proposed work program and timetable targets approval being
received from all Liaison Committee members before year end,
however the timing will be dependent on feedback from the Liaison
Committee and the review and agreement process. The Company is
treating this process as a main priority and expects to start the
JDA, EPC and O&M processes once agreement is made.
Non-Executive Chairman, Michael Haworth, commented: "Today's
announcement represents another important step in the Company's
pathway to success, with alignment on key Project milestones and
delivery between Ncondezi and its potential strategic partners
being shared with the Liaison Committee for discussion and
approval. The Liaison Committee is the Government sanctioned
committee tasked with implementing the Project, and the updated
work program and timetable is the final part of a process which
targets having all relevant parties responsible for the Project's
delivery in agreement on the way forward. Once agreed, the Company
and its potential strategic partners can focus on the delivery of
key milestones, such as the JDA. The Project is one of the most
advanced power development projects in the region, and is located
in an area where the effects of drought have reduced generation
capacity from traditional hydroelectric power sources by up to 25%.
The Company believes it is well positioned to bring meaningful
benefits to Mozambique and meet its growing power needs, with a
clear pathway to delivery in 2023, a competitive power tariff and
world leading potential development partners. Further updates will
be made to shareholders post the meetings with the Liaison
Committee."
Enquiries
For further information please visit www.ncondezienergy.com or
contact:
Ncondezi Energy: Hanno Pengilly +27 (0) 71 362 3566
Liberum Capital Limited: Christopher Britton / Richard +44 (0) 20 3100
NOMAD & Joint Broker Crawley 2000
Novum Securities
Limited: +44 (0) 20 7399
Joint Broker Colin Rowbury 9427
Note:
The information contained within this announcement is deemed by
the Company to constitute inside information as stipulated under
the Market Abuse Regulation ("MAR"). Upon the publication of this
announcement via Regulatory Information Service ("RIS"), this
inside information is now considered to be in the public domain. If
you have any queries on this, then please contact Hanno Pengilly,
Chief Development Officer of the Company (responsible for arranging
release of this announcement) on +27 (0) 71 362 3566.
Ncondezi owns 100% of the Ncondezi Project which is
strategically located in the power generating hub of the country,
the Tete Province in northern Mozambique. The Company is developing
an integrated thermal coal mine and power plant in phases of 300MW
up to 1,800MW. The first 300MW phase is targeting domestic
consumption in Mozambique using reinforced existing transmission
capacity to meet current demand.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
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