Ann: Change of Director's Interest Notice, page-183

Hi Semi just reviewing some proposed infrastructure projects for Tanzania and bringing up an old topic previously canvassed. From Graphex reports cost savings on grid power are expected once converting from diesel. Road infrastructure also adding to economy but not surmountable with a starting point of $60 per ton from mine gate to port Mtwara.

Grid power interconnected from alternate power stations a preference for reliability and maintenance purpose. The existing transmission line feed between Somanga Fungu Power Plant and the MW plant at Mtwara offer dual supply advantage. The spur line from Mingoyo power sub-station to Naganga and then out to Lindi are also good governance of infrastructure with both plants able to feed Lindi from either power plant.

A concern with the spur line from Naganga to Lindi as this can prove problematic for maintenance purposes as it can not be by passed. Any fault upstream could also be problematic to our operation and have a detrimental effect on revenue. Spur lines should not be relied upon but can be effective if used in combination with your very own reliable power source.

A proper diesel genset plant capable of supplying an expanded project 3000 TPD from the outset IMO is required. The grid will not give us this guarantee how ever gensets can provide certainty. Do not rely on a a spur line as a reliable source of power.If a transmission line was in place from Liwale and back to Somanga Fungu Power Plant would be an ideal out come.(Linked to the Nananga Line sub-station)

Some briefing points about Gensets and very much like right size concepts a genset system needs to be designed to an expected load. Gensets can be ran in parallel as a system. Gensets require to be operated at around 80% of capacity or glazing can take effect rendering the genset as useless.

Modern day gensets can operate as an effective system shutting down gensets when loads are not high enough to maintain 80% name plate rating. Gensets can be monitored to share run time over a group of genset's. Gensets can also have load banks added to the system to ensure a 80% capacity is achieved. A national holiday with all gensets running on next to no load could effect operation and needs to be daily monitored. Glazing of gensets can cripple an operation...



From my point of view gensets are the best solution even at higher run cost's. The full design requires enough power to run the entire operation once in full flight. Expand into gensets if required but do not rely on a spur line as reliable source of power. An early switch board cubicle should have all the tie bars and buzz bars designed to full load capacity with redundancy and add genset points from the out set.



Croc rambles