Mozambique government approves JSPL's 2,640 MW coal-fired power plant

Naveen Jindal-led Jindal Steel & Power Ltd (JSPL) has received approval from the government of Mozambique to build a 2,640 megawatts coal-fired power plant in the country's coal-rich Tete province.

Under an agreement signed yesterday in Maputo by energy minister Salvador Namburete and JSPL vice president, Naveen Jindal, power generated from this plant will be sold to Mozambique and the southern African region.

The coal-fired power plant, which is expected to cost around $3 billion, will be located in the districts of Songo and Changara, in Tete province, where Jindal recently bagged a coal mining licence spread across 21,540 hectares for 25-years.

The power plant is expected to be operational in 2015.

Brazilian mining giant Vale is also building the Moatize power plant in the Tete province and Anglo Australian miner Rio Tinto is planning to build the Benga Power Plant, each expected to produce 2,000 megawatts of power.

In February 2011, Mozambique awarded JSPL a 25-year licence to explore and mine for coal in the northwest Tete province. The Mozambique government will own a 10 stake in the mine and JSPL will invest $180 million to produce 10 million tonnes of coal a year.

Mozambique has estimated coal reserves of 23 billion metric tons and the government has so far issued 105 coal mining licenses.