Name and Location
Ngaka thermal coal project, Tanzania.

Project Description
The Ngaka coalfields are located in the vast coalfields of south-western Tanzania, 40 km east of Lake Nyasa, 650 km west of the deep-water port of Mtwara, and 1 100 km south-west of the main trading port of Dar es Salaam.

The deposit is made up of the Mbalawala subbasin, the Ngaka central basin and the Mbuyura/Mkapa subbasin.

Work in the Mbalawala basin is the most advanced and hosts a Joint Ore Reserves Committee-compliant resource estimate of 251-million tons of thermal coal.

The mine is being developed in three stages.

Stage 1 of the project consists of small-scale production, initially at 150 000 t/y in 2011, and ramping up to 360 000 t/y by 2013. Market research indicates that a minimum demand of 10 000 t/m from the Ngaka coalfield is achievable and will potentially triple in the next two years.This stage is currently in progress, with mine design having been completed, mining equipment ordered and being mobilised to the site and the official mine opening scheduled for late May 2011.

Stage 2 will involve the supply of 1.5-million tons of coal a year to a proposed 450 MW mine-mouth Ngaka power station, or a progressive power park planned near Mbeya, with up to 1 000 MW of power targeted in phases.The first stage 100 MW power station is planned for 2014. This development has already proved to be commercially viable.

Stage 3 is proposed to export up to five-million tons of thermal coal a year, either through the ports of Mtwara or Nacala, in Mozambique, with India being the likely destination before 2016.

Value
Not disclosed.

Duration
First coal shipments from stage 1 of the project are expected in June 2011.

Client
Tancoal Energy, a company owned by Australia-based Intra Energy (formerly Atomic Resources) (70%) and Tanzania’s National Development Corporation (30%).

Key Contracts and Suppliers
Wave Engineering Solutions (bankable feasibility study); and Coffey Mining Australia (reserve estimate study).

Latest Developments
None stated.

On Budget and on Time?
The project is on track to deliver first coal shipments in June 2011.

Contact Details for Project Information
Intra Energy, tel +61 2 9252 5766, fax +61 2 9247 8966 or email info@intraenergycorp.com.au.
Tancoal Energy, tel +255 222 137512, fax +255 222 137513 or email info@tancoalenergy.com.