The mining company holds a coal mining concession at Benga, in Tete, Mozambique. The investment for the coal-fired power plant at Benga is by the Riversdale/Elgas consortium, and has not disclosed the amount of investment.
In relation to the Agreement of Principles, the scope of the project negotiations are presently underway between the Energy Ministry and the consortium.
The agency quoting Nazario Meguigy, director of projects and planning at the Energy Ministry, stated that the power facility is scheduled to commence its operations in 2013. He also informed that the agreement should regulate relations in the period before the concession contract is awarded.
The mine at Benga comprises an estimated coal reserves of 273.3 million tons, which is made up of 181.3 million tons of proven reserves and 92 million tons of likely reserves.
Recently, the company has completed a viability study for the exploration of the coal mine at Benga, which resulted that the company during a first phase (2009-2014) could expect to mine 5.3 million tons of coal annually.
