A 2640 MW coal-fired power plant could be built in Mozambique to provide electricity for the east African country and its neighbours.

Mozambique has signed a deal with India’s Jindal Steel & Power for the $3bn plant in Tete province.

Jindal has won a 25-year mining concession which is expected to produce 6.66 million tonnes of coal a year, and the company is reported to be ready to spend more than $175m on mining.

A Jindal official told Mozambique newspaper Noticias that the company “will start producing coal for burning in 2015, and since this product cannot be maintained in large volumes for a long time, there is a need to ensure that by that time the plant is in operation to make use of coal”.

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