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Ncondezi invites bids for coal mining contractor

World Coal,

Ncondezi Energy has initiated a binding bid process to appoint a mining contractor to provide a turnkey solution for the design, engineering, commissioning, operation and maintenance of the Ncondezi coal mine.

The contract work will include the coal processing plant, associated coal handling facilities and infrastructure. The call for bids follows completion and publication of the optimised mine feasibility study in December last year.

Expressions of interest

A total of 11 companies have submitted expressions of interest following site visits, and binding bits are due before the end of the first quarter of 2014. The bids will provide Ncondezi with a binding input coal price for the Coal Sales Agreement (CSA) between the mine and power station.

The CSA will form a key part of the Final Form Power Purchase Agreement between the Ncondezi power station and Electricidade de Mozambique (EdM), as the coal price forms a significant cost input into the final negotiated power tariff rate. The final CSA is due to be completed by the end of Q1 2014.

Coal mining operations

Mining operations will commence within the South Block of the Ncondezi Mine Concession (South Mine). The South Mine covers an area of 200 hectares and has a large enough resource to provide coal to the two 150 MW circulating fluidized bed power station for 25 years, as well as an additional contingency of approximately 50% or an additional 15 years.

Mining will be an open pit, truck and shovel, contractor mining operation supplying domestic grade coal to the Ncondezi power station with an average production of 1.5 million tpa of domestic grade coal.

Adapted from press release by Katie Woodward

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