Benga Power Plant to supply 200 MW of power for mining company
Mozambique: Benga Power Plant in Mozambique is set to supply a mining company with 200 MW of power once it is operational.
This is after Kibo Energy, the company behind the project, signed a binding agreement with Baobab Resources Ltd (‘Baobab’) to supply the power to its Tete Steel and Vanadium Project (TSV Project) in Mozambique.
Located approximately 36 km away from Benga, TSV is being developed to produce half a million tonnes of construction steel per annum and is construction-ready with all licences, concessions, and agreements in place. This is recognised as a key development project in Mozambique and is set to be the anchor industry for the Revuboe Industrial Free Zone (‘RIFZ’), Mozambique’s newest and largest industrial zone.
According to Louis Coetzee, CEO of Kibo, they are delighted to have secured this strategically important agreement with Baobab. The TSV Project represents one of Mozambique’s key development projects that could contribute significantly to the growth of the country.
“We are quite delighted that our Benga project will be supporting this growth by providing 100 % of TSV Project’s c. 200 MW energy requirements, subject to reaching final agreement on an appropriate PPA. This PPA will be one of a number of supply agreements we are targeting for Benga, in line with our commitment to creating reliable, sustainable and affordable electricity in Mozambique and we look forward to providing further updates in due course as these agreements progress,” he said.
Source: Construction Review