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Ngaka Coal Project

Tancoal The Ngaka Coal Project is Tancoals flagship project. Located in the vast coalfields of south western Tanzania, the Ngaka Basin has the potential to host up to 1 billion tonnes of high quality thermal coal.

The Ngaka Basin comprises the Mbalawala sub-basin in the south and the Mbuyura-Mkapa sub-basin to the north. Tancoal has proven coal resources of 212 million tonnes, and expects this figure to increase significantly as further drilling at Mbalawala and Mbuyura-Mkapa is conducted.

Coal mining is due to commence at Ngaka in 2010, with initial mining conducted by a simple, low cost truck and shovel operation, and selling up to 250,000 tonnes per annum (Mtpa) of unwashed coal to Tanzanias domestic customers.

As the mining rate increases, Tancoal will install a modular wash plant at Ngaka and ramp up coal production to meet the expected 1.6 Mtpa required when the 400Mw Ngaka Power Station comes on-line in 2014.

In addition to supplying coal for domestic customers and the Ngaka Power Station, the Ngaka Coal Project will produce between 2-3Mtpa of coal for export.

At an estimated maximum production rate of 4-5Mtpa, the Ngaka Coal Project has sufficient proven coal resources for over 50 years of profitable, low-cost production.

Mbalawala

The Mbalawala coal concession was granted by the NDC to Tancoal in September 2009, and initial drilling confirmed the presence of multiple seams of high quality thermal coal averaging 4.9 metres in thickness.

Located approximately 25 kilometres south of the central Ngaka mine site, the Mbalawala Project is within easy trucking distance of the Ngaka mine site. The largest of Tancoals concessions, Mbalawala has yet to be systematically explored, although historic drilling carried out in the 1930-1950 indicates Mbalawala has the potential to host several hundred million tonnes of high quality thermal coal.

Mbuyura-Mkapa

Located 5-10 kilometres north of Ngaka, the Mbuyura-Mkapa concession was granted to Tancoal in February 2009 and has the potential to host several hundred million tonnes of high quality thermal coal. Exploration results have identified the presence of multiple seams of high quality coals, with low ash, low sulphur and low moisture content

Further drilling is expected to confirm a substantial high quality coal resource at Mbuyura-Mkapa.