Ncondezi Energy Limited's (LON:NCCL) Hanno Pengilly talks to Proactive about the historical development cost reimbursement negotiations with China Machinery Engineering Corporation (CMEC).
These costs are for the work on the integrated Ncondezi 300MW coal-fired power project and coal mine in Tete, Mozambique.
Pengilly says CMEC has agreed in principle to reimburse US$21mln, with the balance, relating to senior and project management costs, still subject to further negotiation.
He notes that US$21mln represents a premium to previously agreed historical development costs.