Ncondezi signs new infrastructure agreement
Mozambique-focused coal miner Ncondezi Coal has signed a new rail and port infrastucture agreement with Rio Tinto Coal Mozambique and Minas de Revuboeas as part of the company's strategy to export coal from its Ncondezi Project.
Mozambique-focused coal miner Ncondezi Coal has signed a new rail and port infrastucture agreement with Rio Tinto Coal Mozambique and Minas de Revuboeas as part of the company's strategy to export coal from its Ncondezi Project.
The aim of the agreement is to further study the Integrated Transport Development Project, with Rio Tinto Coal Mozambique leading the study to determine the feasibility of the corridor.
The project represents a potential solution to provide coal export capacity of between 25m tonnes per annum (tpa) to 100m tpa.
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE

Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
The firm says the project has the potential to be the lowest cost rail transport option for exporting coal from the Tete Province, as it is expected to be the shortest rail distance to port and will utilise new and modern infrastructure to maximise economies of scale.
Ncondezi will not be required to contribute capital to the project feasibility or development capital costs.
The agreement entitles Ncondezi to an export allocation for all of the planned 10m tpa export coal production from the Ncondezi Project.
Graham Mascall, Chief Executive of Ncondezi Coal Company, said: "Signing of the agreement represents a tremendous opportunity and step forward for the company in securing rail and port capacity for the future export of coal from our Ncondezi Project.
"Rio Tinto has significant experience in developing rail and port infrastructure projects around the world, and I believe that it is best placed to lead and implement this project in Mozambique."
The share price leapt 25.51% to 61.5p by 11:18.
NR
Get the latest financial news, insights and expert analysis from our award-winning MoneyWeek team, to help you understand what really matters when it comes to your finances.
MoneyWeek is written by a team of experienced and award-winning journalists, plus expert columnists. As well as daily digital news and features, MoneyWeek also publishes a weekly magazine, covering investing and personal finance. From share tips, pensions, gold to practical investment tips - we provide a round-up to help you make money and keep it.
-
RICS: homebuyers are returning after stamp duty shock
The housing market has been subdued since stamp duty thresholds dropped in April, but there are signs of a recovery
-
Reducing cash ISA limit will make lending difficult and expensive, warn providers
An open letter from the Building Societies Association has urged the chancellor to keep the cash ISA limit at £20,000. We look at whether a smaller cash ISA allowance will make it harder to get a mortgage or loan