Intra Energy lifts sales and production trend likely to continue

Compared to the previous corresponding quarter in December 2015, sales are up 42.3% to 104 104 t and coal production is up 8.4% to 96 708 t.

A contributing factor to this is the Tanzanian government banning coal imports in August 2016 and with the government also encouraging higher production to meet local cement industry demand, IEC expects continuing higher volumes.

IEC’s coal resource is owned by Tancoal Energy Limited, 70% owned by IEC and 30% by the National Development Corporation of Tanzania, and located in the Ngaka coalfield in the west of the country.

Tancoal has a JORC resource of 423 million t which is open-ended and of which 110 million t are a mineable reserve in the process of becoming JORC accredited.

MoU

In November 2015, IEC signed a memorandum of understanding with SINOHYDRO Corporation Limited to assess the feasibility of a 270 MW coal-fired power station which would be located adjacent to the Tancoal mining area.

The feasibility study was completed positively during the quarter and the parties are waiting to commence power purchase agreement negotiations with the Government, with the power station expected to consume 1.25 million tpy. This would contribute to ongoing Tanzanian demand for coal, with IEC also developing its sales program into neighbouring countries, especially Rwanda and Kenya.

According to Chairman of IEC, Graeme Robertson, the potential for higher volumes of production and sales was encouraging for the future of IEC. "While there are higher costs involved in increasing production with larger equipment, we expect high sales and production will begin to have positive financial effects for IEC in 2017," Mr Robertson said.

In the December quarter, 77.5% of IEC’s coal sales were in Tanzania, 11.7% to Rwanda and 10.8% to Kenya.

Read the article online at: https://www.worldcoal.com/power/30012017/intra-energy-lifts-sales-and-production-trend-likely-to-continue/