Ncondezi Coal Project, Mozambique

The project has a total Joint Ore Reserves Committee- compliant resource of 1.8 billion tons. The 38 700ha Ncondezi licence area is located in the coal bearing Tete province in Mozambique, one of the largest undeveloped coal mining regions in the world. A recently completed scoping study on the project has identified the economic viability of an open-pit thermal coal mine with production resources of up to ten million tons a year of export, thermal coal. Mining will be an open pit, truck and shovel, contractor mining operation supplying domestic grade coal to the Ncondezi power station with an average annual production of 1.5 million tonnes of domestic grade coal, a Life of Mine (“LoM”) average strip ratio of 0.61 BCM/tonne and a LoM average yield of 92%.The openpit mine will be 2km award from the power plant and will have a lifetime capacity of 4.8 billion tons of coal. The estimated cost of the power plant is $1 billion and that of the mine between $60 and $80 million. The exact co-ordinates are currently not available however the approximate area of location is lat: -15.5958333; long: 32.7647222.