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Ncondezi Energy set to miss target date for Tete project agreement

Staff Writer |
Shares in Ncondezi Energy fell Thursday as the company said it does not expect the finalisation of a joint development agreement in Mozambique by its end of July-targeted date.

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Ncondezi shares were down 22% on Thursday at a price of 7.10 pence each.

In October last year, Ncondezi agreed with China Machinery Engineering Corp and General Electric South Africa Pty Ltd for them to acquire a minimum 60% stake in the Tete power and coal mine.

The company had targeted an agreement by the end of June, but said Thursday Mozambique's state-owned power company Electricity de Mozambique has asked for a workshop to work through Ncondezi's updated tariff proposal, which the latter has submitted to both EDM and the country's Ministry of Mineral Resources & Energy.

The workshop is planned in August, and Ncondezi said it is now planning to finalise the joint development agreement within three months of getting support from the state-owned power company and the government ministry.

Non-Executive Chairman Michael Haworth said: "Whilst it is disappointing that the joint development agreement will not be finalised by the end of July, the company is encouraged by the response it has received to date from EDM following delivery of the proposal, and believes this is as a result of a competitive and attractive package the company and its potential strategic partners have put together.

"The company believes the project is well positioned to deliver on this as one of the most advanced power development projects in Mozambique together with world class potential strategic partners."

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