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Ncondezi Energy Annual Loss Widens On Coal-Related Writedown

Alliance News

LONDON ( Alliance News ) - Thermal coal power plant developer Ncondezi Energy Ltd on Friday said its pretax loss for 2014 was pushed wider by a writedown on its coal assets, as it said it continues to work on developing its project in Mozambique .

Ncondezi said its pretax loss for 2014 was USD37.7 million , widened from a USD7 million loss a year earlier after the company booked a USD31.8 million writedown taken on the value of its coal assets, caused by a continued decline in global thermal coal prices over the course of the year.

The group said it made progress over the course of the year in developing the Ncondezi thermal coal mine and power plant project it is working on near Tete in northern Mozambique . The company said it secured binding engineering, procurement and construction bids for its power plant in Mozambique and has received binding bids for a mine contractor turnkey solution.

Despite "challenging" conditions in coal and energy markets, Ncondezi said it is still working on developing the power plant and intends to build on the progress made in 2014 in the coming year.

Shares in Ncondezi were down 3.5% to 2.05 pence on Friday morning.

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