Name and Location
Ncondezi coal project, Tete, Mozambique.

Client
Ncondezi Coal Company.

Project Description
The project has a total Joint Ore Reserves Committee-compliant resource of 4.7-billion tons. 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.

A scoping study completed on the project identified the economic viability of an openpit thermal coal mine, with production resources of up to ten-million tons a year of export thermal coal.

Included in the company’s infrastructural development plans is the construction of a transport corridor linking the inland coalfields with the coast and allows for the export of its coal product into the seaborne market.

The operation has an estimated 37-year life-of-mine.

Value
$376-million.

Duration
First coal production is expected by the end of 2014 or early 2015.

Latest Developments
Ncondezi has signed a framework agreement with Mozambique’s Ministry of Mineral Resources for its 4.7-billion-ton Joint Ore Reserves Committee-compliant Ncondezi coal project.

The agreement provides the framework for mutual cooperation in developing the tenement and is a precursor to signing the mining contract, which will govern the project’s development, fiscal regime and operations.

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.