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Baobab, EDM sign energy MoU

24th October 2013

By: Natasha Odendaal

Creamer Media Senior Deputy Editor

  

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JOHANNESBURG (miningweekly.com) – London-listed Baobab Resources on Thursday announced that it had signed a memorandum of understanding (MoU) with Mozambique's State-owned energy company Electricidade de Moçambique (EDM).

The MoU – a step towards developing and formalising a power purchase agreement with EDM – stipulates the joint commissioning of a detailed network option study on Baobab’s Tete pig iron and ferrovanadium project’s power requirements.

"The MoU is a significant milestone for Baobab in its ongoing negotiations with the public and private sectors for securing access to requisite infrastructure. The company looks forward to working with EDM to outline a definitive power solution for the Tete project,” said MD Ben James.

The study, which Baobab-appointed consultants Parsons Brinckerhoff would undertake, would identify and prioritise potential power sources and operating structures and accurately estimate tariff rates. 

“Baobab is also very pleased to announce the approval of the environmental scoping report which, coupled with the completed prefeasibility study, forms the core documentation for a mining title application,” James said.

Further, Ministério Para a Coordenação da Acção Ambiental unconditionally approved the environmental impact scoping report, which formed the basis of the ongoing environmental-, social- and health-impact assessment.

Edited by Chanel de Bruyn
Creamer Media Online Managing Editor

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