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Ncondezi coal project continues

Oilfield Technology,

Ncondezi Coal Company Limited has released an update on its flagship Ncondezi coal project in the Tete province of Mozambique as both the project’s definitive feasibility study (DFS) and the power plant near completion.

As work on both the project and power DFS has progressed, a number of coal production and ramp-up scenarios have been investigated in order to maximise project value, shorten time to production, minimise development capital and accommodate the short-term rail and port constraints.

Ncondezi is now targeting the phased development of an open pit mining operation, producing export thermal coal products as well as using the mine’s middlings and non-export grade coals to feed a mine mouth thermal power station. Ncondezi believes this is a compelling scenario, which maximises the Project’s resource base, is capital efficient, optimises project returns and offers a realistic path to financing and production.

Project Highlights

  • Project DFS on track for delivery in Q3 and publication in Q4 2012.
  • Targeting phased development of the Project to maximise project returns, minimise development capital and time to production and accommodate short-term infrastructure constraints.
  • Resource base can support long life (more than 20 years), open cast mining operation in excess of 10 million tpa.
  • Initial mining operation of up to 4 million tpa, consisting of a 2 million tpa export thermal coal and a 2 million tpa power plant feedstock.
  • Wood Mackenzie study confirms marketability of Ncondezi’s export coal products to Asian markets.
  • Potential small coking coal resource identified, not currently being considered as part of the mine plan.

Power Highlights

  • Encouraging results from Power DFS highlight significant value potential of a mine mouth thermal power plant to meet regional power demand.
  • Phased development of a thermal power plant located within Ncondezi Project area to be included in the Project DFS.
  • Power DFS nearing completion and due for publication in Q3 2012.
  • Mozambique is a key power player in the Southern African Development Community (“SADC”) region and is the largest power exporter into South Africa.
  • Existing and strengthened transmission capacity in Mozambique can support first phase 300 MW to 600 MW power plant.
  • Strategic Partner search process broadened to include power component.




Adapted from a press release by David Bizley

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