The study recommends a phased development of the project, located near Tete province in Mozambique, with construction scheduled to begin in 2014.
Phase 1 of the project execution will include the construction of a 300MW integrated mine and power plant, wherein the company has begun negotiations with Electricidade de Mozambique for the power purchase agreement.
Ncondezi expects to develop a 2Mtpa run-of-mine open pit mining operation to produce domestic grade thermal coal for the power plant.
The 300MW power plant entails a capital expenditure of $504m over 36 months of construction and is projected to begin generating electricity by 2017.
Ncondezi CEO Nigel Walls stated that the project supports the needs of the South African electricity market.
"The 300MW Project has unique advantage over other potential power projects in the region as it is solely dedicated to meeting Mozambican demand, it is scalable in 300MW units ultimately to 1800MW, it is close to existing transmission infrastructure with available capacity and, perhaps most importantly, it is not dependent on the development of rail and port infrastructure projects," Walls said.
