Mozambique has approved a new coal power station worth $1 billion (£600m).

The nation’s Council of Ministers approved the 600MW project run by a group of companies including Electricidade de Mozambique (EDM), Saudi Arabian power developer Acwapower, Japan’s Mitsui and Brazilian mining firm Vale.

The Government estimates building will last about three years.

Mozambique has become one of Africa’s best-performing economies but it stretches out in a long slice across the East African coast which means its generation sources are often long distances away from energy users.

Only 12% of the population has access to electricity according to the latest World Bank figures.

The country has large untapped coal reserves, according to the US Energy Information Administration.