Name and Location
Ncondezi coal project, Tete, Mozambique.

Client
Ncondezi Coal Company.

Project Description
The 38 700 ha Ncondezi licence area is located in the coal-bearing Tete province, one of the largest undeveloped coal mining regions in the world. The project has a total Joint Ore Reserves Committee- (Jorc-) compliant resource of 4.7-billion tonnes.

The Ncondezi mine forms part of the 300 MW integrated thermal coal mine and power plant project, located near Tete. The power plant will be located about 90 km from the local transmission network and will, ultimately, be expanded to a capacity of 1 800 MW.

The Ncondezi mine will be an openpit operation, targeting production of 1.3-million tonnes a year of saleable product to the proposed mine mouth power plant, at an average yield of 70% and an average strip ratio of 0.61-billion cubic metres a tonne using contractor mining.

Value
$376-million.

Duration
Mine commissioning is planned for the second half of 2016 to meet the power plant stockpile requirements ahead of its commissioning in the second half of 2017.

Latest Developments
Aim-listed Ncondezi Energy will start an application process for an environmental permit for its Ncondezi coal mine, following the Mozambique Ministry for Coordination of Environmental Action’s approval of the mine’s environmental- and social-impact assessment.

Ncondezi also recently completed an additional infill drilling of 33 core and three low-density holes within a target mine area of the south pit to further increase drill density and upgrade Jorc-compliant indicated resources into the measured category.

The drilling has been focused within a ring-fenced area capable of supplying the required coal for the first phase of the 300 MW power plant for more than 25 years. Results from the drill programme and an updated reserves and resources statement are expected during the fourth quarter of this year.

Key Contracts and Suppliers
SRK Consulting (scoping study), TWP Projects (project manager of the definitive feasibility study), Impacto and Environmental Resources Management Southern Africa (environmental- and social-impact assessment), and McElroy Bryan Geological Services (MBGS) (exploration consultant and adviser).

On Budget and on Time?
Too early to state.

Contact Details for Project Information
Impacto, tel +258 21 499 636/7, fax +258 21 493 019 or email impacto@impacto.co.mz.
MBGS, tel +61 2 9958 1455 or fax +61 2 9958 2181.
Ncondezi Coal Company corporate development manager Hanno Pengilly, tel +44 20 7183 5402 or email hp@ncondezicoal.com.
TWP Projects, tel +27 11 218 3000, fax +27 11 218 3001 or email twpinfo@twp.co.za.