Tanzania Coal

African coal for African growth

Intra Energy Corporation (“IEC”) is the dominant coal supplier to industrial energy users in the Eastern African region through its 70% ownership of Tancoal Energy Limited (“Tancoal”) which operates the Ngaka coal mine in south west Tanzania, a joint venture 30% owned by the National Development Corporation of Tanzania (NDC), the mine is the largest operational coal mine in Tanzania and East Africa, and is manned exclusively by Tanzanians.

Sizing for Sales at Kitai Stockpile

Tancoal Energy Limited

IEC has been a substantial contributor to the sustainable development of the Tanzanian economy as the following chart shows. The taxes, royalties and imposts paid in Tanzania for FY 2019 totalled A$9.3 million, which was 58% of Tancoal’s gross profit.

Location

The Ngaka Coalfield is 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.

Competent person statement

Mbalawala/MBUYURA-MKAPA

The information in this report relates to Exploration Results, Mineral Resources or Ore Reserves based on the Mbalawala Mine Bankable Feasibility Study with related infrastructure feasibility options as at 31 August 2010, the Mbalawala Coal Mine Bankable Feasibility Study as at 13 August 2010, the Resource Model Assessment and Review, Ngaka Project Area as at 20 July 2010 and the Updated Raw Coal Resource Estimate provided by JB Mining Services Pty Ltd dated 30 September 2017 and 30 November 2017 and have been reviewed by Mr Phillip Sides. Mr Sides 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 ~ 2012 Edition”. Mr Sides is a consultant to JB Mining Services Pty Ltd and has sufficient experience to qualify as a Competent Person as defined in The JORC Code. Mr Sides consents to the inclusion of the matters based on his information in the form and context in which it appears.

Ngaka Mine Coal Specification

PROXIMATE ANALYSIS (Air Dry Basis)
Ash	17 – 20 %
Moisture	5%
Fixed Carbon	61% maximum
Volatile Matter	21% to 26%
Calorific Value	6000 – 6300 Kcal / kg

OTHER PARAMETERS
Sulphur	1% maximum
HGI	55 maximum
Relative density	1.40

Resource

Table 1 – Intra Energy JORC resources

Project	Measured (Mt)	Indicated (Mt)	Inferred (Mt)	Total (Mt)
Tanzania
Tancoal – North	51.00	73.70	71.73	196.43
Tancoal – South	25.53	71.80	63.00	160.33
Total JORC resources	76.53	145.50	134.73	356.76

In the Community

IEC and Tancoal remain committed to working with the local people by supporting community projects.

Tancoal employs workers from the local community and has implemented training schemes to develop basic skills for employment;
Tancoal has refurbished a local school and works with the school to identify local students who are selected to attend training in environmental, medical and mechanical skills;
Infrastructure has been upgraded with the construction and maintenance of bridges and roads and
Community involvement in vegetable production from pit backfill areas to be used for supply and catering to Tancoal personnel as well as fulfil best practice reclamation work in mining operations.
Annual Tree Planting for the mine and the villages.

The “Mbalawala Women’s Group” was established in late 2011 after consultation with local women and in partnership with community leaders. The Women’s Group provides local goods and services, including processing food from the Tancoal market garden formed by rehabilitating previously mined areas and dressing with topsoil. The project aims to establish a number of activities so that the women learn new skills and have the opportunity to run each activity as a business, including making coal briquettes certified by the Tanzanian Bureau of Standards to replace charcoal, an environmental hazard, in cooking fires. It also enables IEC to work with local women to improve their education, health, independence and social equality. The Group was supported and funded from 2011 by the company and has been able to expand its operation with the growth of the mine, during 2019 it became self-funded. IEC congratulates Mbalawala Women’s Group on its achievement in creating a sustainable future and confirms its commitment to support the Group as needed into the future.

Environmental

The annual tree planting programme again saw Tancoal transplant a total of 10,000 tree seedlings of indigenous species. Trees were planted around the mine site and stockpile area at the mine, villages surrounding mine site, the haul road and stockpile area at the Kitai sales point.

Tancoal has submitted the Mine Closure Plan to the Ministry of Minerals. The Minister appointed a National Mine Closure Committee which visited the mine site and conducted a mine closure meeting with Tancoal, giving some recommendations to be incorporated in the plan document which has been submitted for approval.

Storm water trenches have been continually upgraded for the rainy season in accordance with the mine development plan. Tancoal is also constructing a large lined pond to hold acidic water to comply with legal requirements. The monitoring of acid water and suppression of mine dust continues. Blasting is controlled by monitoring sound level, vibration and dust emission to ensure they do not exceed the standards set by the Tanzania Bureau of Standards.

Level 40
2 Park Street
Sydney NSW 2000.

Email: info@intraenergycorp.com.au