Ncondezi Energy has entered into the final phase of negotiations with its strategic partners, China Machinery Engineering Corporation (CMEC) and General Electric South Africa (GE SA), to sign a binding joint development agreement (JDA) for the company’s integrated 300 MW power and coal mine project in Tete, Mozambique.
The company on Monday also reported in a statement that positive developments continue to be made on the JDA and it believes a final JDA that is ready for execution is close to being finalised.
All parties continue to provide commitments to sign the JDA as soon as possible and this will require more time than the current target date of the end of April.
The company is targeting an update to the market as soon as the JDA is in final agreed form and ready for submission for signature by the each of the parties.
In addition, during the week of April 22, Ncondezi joined the Mozambique government delegation in Beijing, China, for the second Belt and Road Forum for International Cooperation.
During the visit, Ncondezi, CMEC and GE SA held successful meetings with Mozambique President Filipe Nyusi, the Tete governor and the Mineral Resources and Energy Deputy Minister.
The meetings focused on the current status of the project and critical next steps, including the signing of the JDA.
The Mozambique government again emphasised the importance of new energy generation in the country's strategic planning and pledged its support for the project, encouraging Ncondezi and its strategic partners to continue working to deliver the project.
Follow-up meetings with the Mozambican government will be targeted following the finalisation of the JDA.
“Significant progress has been made on the JDA over the last month, with alignment being reached on a majority of the commercial points,” commented Ncondezi nonexecutive chairperson Michael Haworth.
“The final JDA draft is expected [soon] and the company asks for investor patience during these closing stages.
“At this time, no material delays in signing the JDA are expected. The company’s successful attendance as part of the Mozambican government delegation in China for the second Belt and Road Forum for International Cooperation provided an opportunity to raise the profile of the project and provide the company’s strategic partners with further support from government.”
“CMEC is looking forward to realising the JDA soon and believes that, together with GE SA and Ncondezi, there is strong confidence to deliver the high-efficiency and advanced Ncondezi integrated power plant and mine to bring reliable power supply to the Mozambique power market,” said CMEC VP Fang Yanshui.