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-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 can be expanded to a capacity of up to 1 800 MW.

The Ncondezi mine will be an openpit operation, targeting production of 1.5-million tonnes a year of saleable product to the proposed mine mouth power plant at an average yield of 92% and an average strip ratio of 0.61-billion cubic metres a tonne using contractor mining.

Net Present Value/Internal Rate of Return
Not stated.

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 first half of 2018.

Latest Developments
Ncondezi has reported that, following a detailed review of its budget and the implementation of cost-saving initiatives, the company’s management is confident that it has sufficient cash to support ongoing operations until the first quarter of next year.

The company has revealed that, as of February 28, it had $3.7-million cash on its balance sheet. Ncondezi is preparing for commercialisation as it approaches its 2016 deadline for meeting power plant stockpile ahead of its 2018 deadline for commissioning at its Ncondezi coal project. Further, Ncondezi has received official notification from the Ministry for Coordination of Environmental Action regarding the approval of the environmental- and social-impact assessment (ESIA) for the 92-km-long transmission line that will connect the Ncondezi project to the Mozambique national grid.

Key Contracts and Suppliers
KPMG (mine feasibility study); Impacto and Environmental Resources Management Southern Africa (environmental- and social-impact assessment) and the Mineral Corporation (geological consultant).

On Budget and on Time?
Too early to state.

Contact Details for Project Information
Ncondezi Coal Company corporate development manager Hanno Pengilly, tel +44 20 7183 5402 or
email info@ncondezicoal.com.