Fergus Jockel - Projects Manager, Tancoal Energy Tanzania. ipad East Africa 2009, Dar es Salaam, TANZANIA

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1 Fergus Jockel - Projects Manager, Tancoal Energy Tanzania ipad East Africa 2009, Dar es Salaam, TANZANIA

2 Infrastructure Requirements For Mining Operations in Tanzania Power, Water, Transport & Logistics Presented at Kilimanjaro Hotel, Dar-es-Salaam, 11 th August 2009

3 This presentation is based on the resource development work completed by Tancoal Energy & NDC personnel during its assessment of the economic potential of the Ngaka Coalfield. Welcome All Fergus Jockel

4 Who is Tancoal Energy Ltd? Tancoal Energy is a JV established in Tanzania between the para-statal National Development Corporation (NDC) and Pacific Corporation East Africa (PCEA). PCEA in turn is 85% owned by Australian publicly-listed company Atomic Resources Ltd (ASX:ATQ). The remaining 15% is privately held.

5 Background Information Tancoal Energy was formed as a Special Purpose Vehicle created to assess & develop the Muhukuru Coalfield & the Mbalawala, Mkapa & Mbuyura Subbasins of the Ngaka Coalfield. The commitment is to develop coal feedstock for the purposes of export and coal-fired power generation

6 Tancoal s Brief In short; Tancoal Energy Ltd is commissioned through a Tanzanian Government Private Sector initiative to realising the value of a significant (but undeveloped) Tanzanian asset Coal.

7 Where are the Ngaka & Mhukuru Coalfields? ~600 kms NB: In the Mtwara Development Corridor

8 Work Completed Since Tancoal s Inception An extensive review of CDC s work Drilled 19 drill holes for 2,984 metres of HQ3 core verifying the results achieved by CDC. Average cost USD165/m. Sent 340 samples to South Africa for laboratory-based test-work. Note: Tancoal is the first company to do any form of field work based assessment on Tanzania s 2 nd biggest coalfield since 1953.

9 So, why is Infrastructure of interest to Tancoal?

10 Ngaka Project Area To date, Tancoal has only completed a partail assessment of the Mbalawala Subbasin. Can only get bigger! Coal-rich Mchuchuma Formation as outlined by the CDC

11 Tancoal & Infrastructure Tancoal Energy plans to develop its coal resources to produce ~ Mtpa. It is anticipated that the planned 400MW power station will consume Mtpa. Thus; ~ Mtpa to be exported, this equates to approximately 4,500 tonnes to be shipped daily (90 x 50t payload trucks).

12 Mtwara Development Corridor Dar-es-Salaam Songea Mtwara Mchuchuma Ngaka

13 What is the Mtwara Development Corridor? Involves certain Regions & Provinces of Tanzania, Mozambique, Zambia & Malawi. Set-up & finalised through SADC in Tancoal s JV partner, NDC, played a pivotal role in its creation. Aim is to develop the region through advancement of infrastructure projects, e.g., Unity Bridge (US$30M). Leading to investment in, & development of, the many potential large (and small) projects within the Corridor.

14 Realised & Potential Projects Within the Mtwara Development Corridor Ngaka Coalfield Tancoal Energy Mchuchuma Coalfield NDC Liganga Iron-Titanium-Vanadium Project NDC Mkuju Uranium Project Mantra Resources Kayelekera Uranium Project Paladin Resources Tancoal s Coal-fired Power Project Agricultural Projects e.g., Forestry, Biofuels Tourism e.g., Marine Parks, Lake Nyasa.

15 Export Challenges Facing Tancoal Export alternatives; Transport directly road/rail to Mtwara Port. 750 kms of good quality road or a railway line required. Partially in progress? Barge to Itungi Port (Lake Nyasa) Road to Mbeya Rail to Dar. Triple handling. Barge to Litwonde (Malawi) Rail to Nacala Port (Mozambique). Crosses Two International Borders.

16 Export Routes?

17 Why Have Good Quality Infrastructure Development? Good Quality Infrastructure roads, railways, port facilities, airports, accessible power, industry services, government services allows products, be they coal or coffee beans, yellowcake or yellowtail tuna, to be exported more efficiently, cheaper and quicker to markets than your competitors.

18 Infrastructure Development Chicken & Egg scenario(s). Requires Initiative & Integration, e.g., Mtwara Development Corridor. Recognition & acceptance of risk. Tancoal has. Fast track & encourage project development, e.g., Mchuchuma, to improve economies of scale. Joint Infrastructure Development Planning essential Project Development requires much more that roads & railways workforces to be accommodated, schools, hospitals, training.

19 1. Financing 2. Technical Capability 3. Aligning Interests Challenges Positive Outcomes 1. Increased Export Income 2. Additional Power Generation 3. Employment & Training 4. Development of Service Industries

20 Thank you all for your time