corridor sands terms of reference

Interesting reading...

http://www.mirem.gov.mz/relatorios/formacao/chibuto/terms_of_reference_eng.pdf

The Ministry of Mineral Resources (MIREM) of Mozambique makes it clear they expect the ilmenite to be processed in the country. They refer to slag smelting using electric furnaces, but emphasise the shortage of electricity in the country.

"...Supply of energy, particularly electricity, has been tight in very recent years, and indeed weighed on the previous project. But Mozambique is blessed with gas and coal so there are several future options in terms of energy supply that will be coming on stream in the near future.."

"...Power supply is important since the previous project envisaged a 400kV supply from South Africa and 193km long transmission line."

If they go with electric furnaces, they will soak up a large chunk of the output of the planned 750MW Moamba power station in the south (2013), which they would also need to power Maputo and the Mozal aluminium smelter. Other power projects shown are far to the north of Moz. The cost of Moamba is US$1.3B.

There is likely to be only one bidder that has a non-electric (=APG) option. BHP. So they can avoid the capital costs of electricity generation and transmission.

Proposals were opened on 18 Mar and are valid until 5 Aug.