The solution will also be used for coal processing plant, associated coal handling facilities and infrastructure.

The process follows completion and publication of the optimized mine feasibility study in December 2013, the company said.

With binding bids due before the end of Q1 2014, 11 reputable firms have submitted expressions of interest for the tender.

The bids will provide binding input coal price to Ncondezi for the coal sales agreement (CSA) between the mine and power station while final form CSA scheduled to be completed by the end of Q1 2014.

As the coal price forms a significant cost input into the final negotiated power tariff rate, CSA will form a key part of the final form power purchase agreement between the Ncondezi power station and Electricidade de Mozambique (EdM).

Mining operations are due to commence within the South Block of the Ncondezi Mine Concession (South Mine) which covers 200h.

The mine comprises resources to provide coal to the 2x150MW Circulating Fluidised Bed power station for a period of 25 years as well as a contingency of approximately 50% or an additional 15 years.