Mozambique’s power utility to sign with coal mining companies Vale and Jindal for electricity generation

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Mozambique’s power utility to sign with coal mining companies Vale and Jindal for electricity generation

11:51 CAT | 26 Feb 2016

The chairman of the board of directors of Mozambique Electricity, Mateus Magala, has announced that the company is about to finalize contracts for coal-fired electricity generation with Brazilian miner Vale and India’s Jindal, both of which operate mines in Tete.

Vale and Jindal have been negotiating construction projects for coal-fired power stations with the Investment Promotion Centre and Mozambique Electricity since last year, with Magala now saying they are about to reach a final decision.

Neighbouring countries like Malawi, Zambia and Zimbabwe are mentioned as possible buyers of the electricity produced by the mining companies when they branch out into generation.

Magala said however that the shortage of electricity in the country, currently around eight hundred megawatts, makes it imperative to continue to encourage the use of alternative energy sources.

Source: TVM