Indian coal and steel multinational Jindal Steel and Power is seeking to hire a consultant to manage the firm’s project to build a 150 megawatt power plant on the site of its coal mine at Chirodzi, Tete province, according to a tender notice published on Friday 11 March.
The planned plant is half the size Jindal had planned a year ago, when the country head for Mozambique told Africa Outlook Magazine the company would build two 150 MW units in two phases. On its website, the company discloses yet another plan – to build one 42 MW power station, and another of 140 MW.
According to last week’s tender, the 150 MW power project will be owned by Jindal Investimentos SA, a wholly-owned subsidiary of Jindal’s Mauritius-based company which holds most of Jindal’s African operations. Jindal’s Mozambique mining company, JSPL Mozambique Minerais Limitada, is 97.5% owned by the Mauritius company, which is itself 100% owned by the Indian parent.
Jindal said it continues to operate its 3 million tonnes per annum coking coal mine in Tete, according to the company’s most recent financial results, published in March 2015. It has cut costs at the project by bringing mining operations in-house, rather than using an external contractor.
Coal-fired power rush
Jindal’s planned coal-fired power plant will enter a crowded field of projects which appear to be moving forward in Tete:
ACWA Power is tying up financing for a 300 MW coal-fired plant linked to Vale’s Moatize coal mine
Nkondezi Energy is hoping to bring China’s Shangai Electric Power on board as lead developer of the Nkondezi 300 MW power project
Indian consortium ICVL is currently tendering for a firm to build a 200 MW plant at its mine
Like its fellow coal miners in Tete, Jindal wants to build a power plant to make use of the lower-grade thermal coal which it mines as a by-product of its export-grade coking coal.
The power plant’s output will be sold to Mozambique’s national electricity utility EDM under a 25-year power purchase agreement (PPA), according to Jindal’s advertisement for a project manager, published in daily newspaper Noticias on Friday, 11 March.
Once the project manager is brought on board, Jindal Investimentos will tender for a fixed-price EPC contract to build the plant, and an operations and maintenance contract.
The plant will also require a connection to be built to the Songo-Matambo 220 kV transmission line which runs next to the project site.
source: Africa outlook magazine
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