A responsible developer and operator of coal assets to provide energy security to support regional growth and create wealth for its shareholders

Tanzanian Projects

Ngaka Thermal Coal Project

Key Facts

  • Mbalawala Mineable Reserve of 40 million tonnes
  • Mbalawala BFS complete and positive
  • JORC-compliant resource of 423 million tonnes upgraded in October 2012

The Ngaka Thermal Coal Project is Intra Energy’s most advanced and exciting development project. Intra Energy operates the Ngaka coal project through joint venture Tancoal Energy Limited (Tancoal), 70% owned by Intra Energy and 30% by the National Development Corporation (NDC) of Tanzania.

Wave Engineering Solutions released a Bankable Feasibility Study in September 2010 for the commercialisation of a thermal coal resource. This study confirms the economic viability of Atomic’s coal reserves at Mbalawala Block, Ngaka Coalfield. The reserve estimate used in this study was prepared by Coffey Mining Australia in accordance with the JORC Code (2004).
 

 

Tancoal

 

Location

Ngaka Project Location Map

The Ngaka Coalfields are situated in the resource-rich western minerals province of Tanzania, 40km east of Lake Nyasa, 650km west of the deep water port of Mtwara, and 1,100 km southwest from the main trading port of Dar es Salaam.

Tancoal has ownership over six coal bearing tenements in the Ngaka Coalfields. Extensive exploration has taken place over the last two years, augmented by geological surveying over several decades.

 

Resource

The Ngaka Coalfields comprise the Mbalawala sub basin, the Ngaka Central Basin and the Mbuyura/Mkapa sub basin. Work in the Mbalawala basin is the most advanced.

Resources upgrade

In October 2012 IEC announced an upgrade and revision of Tancoal's JORC resources to 423 million tonnes:

Tancoal JORC Resource
  Ravensgate
(July 2010)
JB Mining
(October 2012)
  Mbalawala block Mbalawala block Mbuyura Mkapa
Measured 139 39 16
Indicated 66 63 49
Inferred 46 114 142
Total 251 216 207

IEC carried out substantial exploration throughout 2011 and 2012 with 188 cored holes (exploration, stratigraphic and pre-development) drilled for a total of 14,206 metres. Hole depths averaged 94 metres. IEC engaged JB Mining Services Pty Ltd (JB Mining), an independent geological and mining services company, to complete a review of all geological data and resource evaluation.

JB Mining reported a downgrade of resources for the Mbalawala Block from 251 million tonnes JORC resource to 216 million tonnes (previously reported by Ravensgate Minerals Industry Consultants in 2010), though an overall increase in JORC resources of 69% to 423 million tonnes.

JB Mining’s evaluation covered a larger geological database, and the consultants applied different JORC criteria and categorized resources on an “individual seam” basis compared to Ravensgate’s “total deposit” basis.


Coal qualities per defined resources in Mbalawala - Ravensgate 2010 Report:

Resource Category
Measured
Indicated
Inferred
Total
Tonnes (million)
139
66
46
251
Inherent Moisture (%)
2.9
2.8
2.6
2.8
Ash (%)
18.9
19.0
23.8
19.9
Fixed Carbon (%)
52.0
51.4
46.3
50.8
Volatile Matter (%)
26.3
26.9
27.3
26.6
Calorific Value (MJ/kg)
26.5
26.6
24.9
26.2
Total Sulphur (%)
1.4
1.3
0.8
1.3
RD (g/cm3)
1.5
1.5
1.6
1.5

 

Source: Radley, 2010

Notes
Coal Resources have been rounded to appropriate levels of accuracy in accordance with The JORC Code (2004)
The estimates of Coal Resources in this table have been carried out by Ravensgate geological consultants in accordance with The JORC Code (2004)
Coal quality data reported is based on weighted averages for all seams
The Inherent Moisture is reported at an as received basis; all other analysis are reported air dried “air dried basis”

Strategic Development

Intra Energy operates in Eastern Africa.

Stage One (current):

Domestic Tanzanian industrial market using coal for import substitution and replacement of diesel and wood in industrial processes. Limited export regionally to Malawi and Kenya. Current production capacity of 30,000 tonnes per month and long-term contract sales commenced to industrial customers in Tanzania, Uganda and Kenya. 

Stage Two (2014-2018):

Power generation with first net 200MW (223MW gross) coal-fired power station currently in design and sited adjacent to the Tancoal mine with PPA termsheet under negotiation. Transmission expansion will allow additional generation connection at Songea. A second power station (120MW net) is proposed near the Malcoal mine. There are currently no coal-fired baseload power stations in Tanzania, Malawi or in neighbouring countries, but many are planned after 2015. Power plants are of a national strategic significance due to energy profile.

Stage Three (2018 onwards):

Exploring the export of coal utilising the southern growth corridor of Tanzania. Existing coal resources are capable of supporting additional power projects. Target markets specific to Indian Ocean/African countries.

 

Customers

Intra Energy is initially focused on the domestic and regional East African industrial market, where current users either import expensive coal, or use high cost, inefficient and high pollutant alternative products.

Intra Energy has entered into initial supply contracts with a number of regional customers. The company is carrying out a proactive marketing campaign and is in discussions with other industrial producers and agricultural processors all looking to convert to coal fuel.


 

DECLARATION AND QUALIFICATIONS

This resource statement has been compiled by Phillip Sides, a qualified senior geologist employed by JB Mining Services Pty Ltd (JBMS), with over 25 years’ experience in the exploration and evaluation of coal resources.

The author is a Member of the Australian Institute of Geoscientists and as such qualifies as a Competent Person as defined by the “Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves (The JORC Code) 2004 Edition”.

This report has been prepared using the guidelines for the estimation of black coal resources and reserves as contained in The JORC Code.

Neither the author nor JB Mining Services Pty Ltd has any material interest or entitlement, direct or indirect, in the securities of Intra Energy Corporation Limited. JBMS has been providing geological services to Intra Energy Corporation on the Kabulo Project since early 2011.

Mr David Mason, Executive Director – Exploration and Business Development of Intra Energy Corporation Limited, originally requested this resource evaluation. All fees for the preparation of this report are charged on a time and materials basis.

Initial evaluation, computer modelling of seam structure and coal quality and initial coal tonnage estimates were undertaken by Greg Jones, Senior Consultant/Director of JB Mining Services prior to handing over responsibility of the Resource evaluation to Phillip Sides.