AMN - TANZANIA: Ngaka coal area allocated to Dangote

Intra Energy Corp (IEC) subsidiary Tancoal Energy Ltd has reached agreement with the responsible Ministries in Tanzania with regard to allocating an area of its coal tenements to Dangote Industries Tanzania. Tancoal will allocate Dangote a mining area that is under application and which will not impact Tancoal’s current mining operations but will reduce its coal resources.

Tanzania’s Minister of Mining and Energy has confirmed that Tancoal will continue its current mining operations. ASX-listed IEC holds a 70% stake in Tancoal and the Tanzanian state-owned National Development Corp (NDC) holds the remaining 30%.

Tancoal has also identified a credible mining contractor and is finalising contractual conditions to allow immediate commencement and subsequent increase in production.

The Ministry of Energy and Minerals published the following release: “The process of giving Dangote Cement an area to mine coal to enable it to mine its own coal has been completed. The company will be given an area of 9.98sqkm in the Ngaka Coal Fields, Mbinga District, Ruvuma Region.

“This comes after the directive from the President of the United Republic of Tanzania, Dr John Pombe Magufuli, issued on 5 March 2017 while on an official business tour in Mtwara. In that official business tour, the President ordered the Ministry of Energy and Minerals to provide Dangote with a coal mining area within the Ngaka coal fields for mining their own coal for their cement industry usage.

“The government will continue to provide assistance and cooperation to investors in the energy and minerals sectors to ensure that the existing and new projects contribute considerably in the economy of the country to meet with the government's drive for industrialisation.”

Tancoal has advised the Ministry of Energy and Minerals that it reserves its legal rights and insists that due compensation be paid for costs expended on the area to be given-up.

www.intraenergycorp.com.au

News courtesy of International Mining