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
-
8 of the best houses for sale with annexesThe best houses with annexes – from a period property in the Lake District to a 13th-century house with a two-bedroom annexe in Saltwood, Kent
-
Zelenskyy moves to appease Donald Trump – what happens now?Ukraine’s president Volodymyr Zelenskyy is conceding ground to secure the least-worst deal possible, says Emily Hohler
