25 March 2021: Ncondezi Energy Limited ("Ncondezi" or the "Company") (AIM: NCCL) is pleased to provide an update on the integrated Ncondezi 300MW coal fired power project and coal mine in Tete, Mozambique (the "Project").
· Positive tariff negotiations continue
· The next step is receipt of formal feedback from Electricidade de Moçambique ("EDM") and the Government of Mozambique following submission of agreed studies in December 2020
· China Machinary Engineering Corp ("CMEC") has reiterated its support for Project
Ncondezi Chief Executive Officer, Hanno Pengilly said: "We are at an advanced stage in our negotiations with both EDM and the Government. All the requested information has been delivered and further questions have been answered. We are now awaiting formal feedback from both EDM and the Government which will drive the Project timetable for the next critical milestones.
The Project remains the most advanced baseload power project in the area with the ability to supply the required power to the grid, inline with current Government generation policy targets. The Project also benefits from strong partner support as demonstrated by CMEC's commitment to certain early works budget. This has ensured that the work necessary for the Project to meet Chinese investment standards has continued during the negotiations.
Finalising the tariff will unlock all the remaining milestones and while we aim to provide updates as regularly as possible, we must balance this with the sensitive nature of such negotiations. We continue to believe the Project is in a very strong position as it is technically sound, has a financing plan in place and able to provide a commercially attractive tariff. We look forward to providing further updates in due course."