Ncondezi Energy shares sink as Mozambique coal project delayed

Completion of the power development company’s JDA for the integrated 300MW power and coal mine project in Tete Mozambique will take place after necessary support has been granted from Mozambican state power utility Electricity de Mozambique (EDM) and the ministry of mineral resources and energy (MIREME).

Michael Haworth, non-executive chairman of Ncondezi, said: "Whilst it is disappointing that the JDA will not be finalised by the end of July, the company is encouraged by the response it has received to date from EDM following delivery of the proposal, and believes that this is as a result of a competitive and attractive package."

EDM has requested a detailed workshop session with the company and its potential strategic partners before lending support, with such a meeting planned for early August.

Key milestones including the power tariff sign off, power purchase agreement negotiations, financial close and the date of first power on the grid are expected to be agreed during the workshop, with a defined timetable to be given after its completion.

"The company believes that the project is well positioned to deliver on this as one of the most advanced power development projects in Mozambique together with world class potential strategic partners," said Haworth.

Ncondenzi Energy’s shares were down 21.43% at 7.15p at 1315 BST.