Maputo, Mozambique — 22 May 2012 – Ncondezi Coal “’ an emerging Mozambican coal development company “’ has signed a cooperation agreement with Mozambique’s Mineral Resources Ministry regarding development of the company’s flagship project in the country’s Tete province.
A statement released here by the company “’ which is quoted on the Alternative Investment Market of the London Stock Exchange “’ indicates that the agreement precedes the signing of a mining contract that will set conditions for developing the project at a cost of US$376 million.
The Ncondezi project covers a licence area of 38,700ha and has a JORC resource of 1.8 Bt at less than 200m depth. Its scoping study confirms a 10Mtpa thermal open cast mine which will be only 10kms from local railway infrastructure that connects to the Port of Beira. Reserves are estimated at 4.7 billion tonnes.
“The signing of this agreement is very important because it sets parameters and a calendar for signing the mining contract when the definitive feasibility study is submitted to the ministry,” said the company’s executive president, Graham Mascall.
Good potential exists to increase the resources within the Ncondezi project where there is also considered to be strong potential for coking coal. The company is now focused on the completion of a fast-track bankable feasibility study, which is scheduled to be completed in the second half of 2012.
Ncondezi Coal announced last April that it was seeking a strategic partner for the project. The first coal extraction is forecast for late 2014 or early 2015.
Source: Ncondezi Coal Company. For more information, click here.