Intra Energy Corp. advises that it has reached an agreement with the responsible Ministries in Tanzania with regard to allocating an area of its coal tenements to Dangote Industries Tanzania.
The Minister of Mining and Energy has confirmed that Tancoal Energy Ltd will continue its current mining operations. Tancoal has agreed to allocate to Dangote a mining area that is under application.
This agreement will not impact current mining operations but will reduce Tancoal’s coal resources.
IEC holds a 70% stake in Tancoal and the Tanzanian state owned National Development Corporation (“NDC”) holds the remaining 30%.
Tancoal has also identified a credible mining contractor and is currently finalising contractual conditions to allow immediate commencement and subsequent increase in production.
The Ministry of Energy and Minerals has published the following release:
“The process of giving Dangote Cement an area to mine coal to enable it to mine its own coal was completed today, 11 March 2017. The Company will be given an area of 9.98km2 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 the 5 March 2017 while in 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 Ministry of Energy and Minerals that it reserves its legal rights and insists that due compensation be paid to Tancoal for costs expended on the area to be given-up.
Read the article online at: https://www.worldcoal.com/coal/16032017/iec-releases-coal-tenements-update/
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