Intra Energy starts coal mine development in Malawi0 Comments

By admin
Posted on 27 Jan 2013 at 9:19pm
Coal

Coal

(MENAFN – ProactiveInvestors – Australia) *Intra Energy (ASX:IEC) has progressed its Eastern African regional expansion strategy by acquiring coal licences including that of an operational mine in Malawi.

The concessions include the operating Nkhachira Coal Mine within Mining Licence ML0143/2005 and three Exclusive Prospecting Licences (EPL), located in the north of Malawi, west of the town of Karonga.

Intra Energy has established a joint venture company Malcoal Mining in which it has 90% interest and CMI has 10% free carried interest.

The three EPLs were granted to CMI which were acquired by Intra Energy for 800,000 and a loan of 150,000.

The EPLs cover a combined area of 84.7 square kilometres while the mining licence covers an area of 2 square kilometres.

Intra Energy is planning to expand the operational mine this quarter and has set up a regional office in the country’s capital Lilongwe.

The company carried out geological mapping and exploration drilling as part of due diligence with activities focused on the mining licence and EPL 174 where significant, good quality thermal coal resources had been delineated by CMI through drilling and mining.

A drilling program by Intra Energy comprising 17 holes for a total of 711.5 metres was carried out and final assay results are awaited before definitive coal quality are reported.

Intra Energy has carried out production feasibility work on the Nkhachira deposit and designed an open pit mine utilising truck and shovel mechanised mining techniques.

The coal to be extracted does not require expensive preparation and will be delivered to consumers by road and later by barge.

A contract mining arrangement has been negotiated local quarry contractor and plans are underway to commence mechanised mining operations in early 2013.

*Intra Energy Corporation Limited is an Australian public company.

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