The Saudi Gazette reported that the Mozambican government and the Saudi ACWA Power signed a concession agreement in Maputo for the construction of a coa-fired power station in Moatize district, in the western province of Tete.

The power station, which will produce 300 MW in its first phase, will be built at the mouth of the gigantic open-cast coal mine in Moatize, operated by Vale. It will use as its raw material the coal mined by Vale, which is not of good enough quality for export. Thus, the higher grade coal (particularly coking coal) will be exported, while the lower grade coal will produce electricity in Mozambique.

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