Coking Coal Potential

The coal sub-basins of the Tete province have produced coking coal from small scale mines operated by other parties, including the currently operating Minas Moatize mine. The existence of coking coal in the Tete region has also been demonstrated in proven coking coal resources confirmed at both Vale’s Moatize and Riversdale’s Benga projects.

Preliminary coking coal test results from three core holes drilled in 2009 have identified a blending coking and PCI grade coal, and demonstrate that coking coal potential exists in licences 804L and 805L. The coking coal test work is still at a very early stage and additional work is required to confirm this potential. SRK noted that early results in 2006 from Riverdale’s Benga project were similar. The Ncondezi Group has now appointed technical experts to oversee a more systematic and prescribed exploration techniques to assist the Ncondezi Group in evaluating the coking coal potential.