Yes, most of Tanzania's power is currently produced by hydro-electricity, which as you can appreciate has variable output due to changes in rainfall and water inflows to dams. A far as I know, Tanzania does not operate any large thermal coal-fired power stations.
The two major cement factories in Tanzania that Tancoal have received Letters Of Intent from, and for whom 1,000 tonnes bulk samples will be produced, use the coal to heat furnances and kilns in the cement making process. The local breweries also use coal for a similar purpose.
The proposed 400Mw power station at Ngaka will be developed because it is a vital national priority and is at the heart of the Tanzania Government's plan to develop its national economy and promote foreign investment.
Obviously the viability of the power plant is a key component of the BFS, which will be completed by August. No investment decisions can be made regarding the power station until the BFS is completed.
I can't say anything about a capital raising at this time, but obviously ATQ will need to raise more funds soon.
I am currently organising an investor roadshow for early June, at which time ATQ will probably make an announcement about its intentions to raise capital.
ATQ Price at posting:
17.5¢ Sentiment: None Disclosure: Not Held
