Ncondezi Coal Company (“Ncondezi” or “the Company”) is a near term integrated thermal coal and power generation company listed on AIM under the ticker symbol: NCCL. The Company is focused on the phased development of its Ncondezi Project, located in the Tete Province in Northern Mozambique, which has a 4.7 billion JORC resource capable of supporting a large scale, long life operation.
Ncondezi Coal Co (LON:NCCL) has launched the search for a strategic partner to help develop its flagship Mozambique project.
It has appointed Standard Chartered Bank to act as financial advisor in relation to the search.
The news lifted the stock in early trade, and by 10.00 am, it was up 6.5 per cent at 57.5 pence.
The company is mulling a number of scenarios for a participation: a partner could take a stake in the company or the project, enter into an offtake agreement or bring financing or construction capabilities to the deal.
“Given the company's expectation that its export thermal coal project will be of significant interest to a number of potential partners, together with the expected completion of the definitive feasibility study on the project in September 2012, timing to launch the strategic partner initiative is now opportune,” Ncondezi Coal said.
The September date for the DFS was flagged earlier this week, when it told investors that a workshop between management, directors, consultants and contractors will take place in May to confirm key parameters for the project and provide the definition and framework for the study.
The total coal resource at Ncondezi was recently increased from 1.7 billion tonnes (Bt) to 4.7Bt, while Ncondezi is also part of an infrastructure study with Rio Tinto and Minas de Revuboe over a new greenfield rail and port corridor in Mozambique.
The final elements of the DFS - the mine plan, product specification, coal beneficiation plant design, logistics and other studies – were commissioned in the first quarter of 2012.
A prefeasibility study has also been started to examine producing a lower grade product for power station feedstock, with consultant Parsons Brinckerhoff also looking in to the economics of a 3600MW coal fired power plant in the Tete Province of Mozambique.