Harnessing Growth in Tanzania

Feasibility Studies – Mining
Key Outcomes from Pre-Feasibility
Study (PFS)
Mining Project PFS Reflects a Feasible Project
with Attractive Returns
• Financially feasible for all the options investigated.
• Best-estimated NPV ranges between USD 211 million and
USD 244 million.(at a discount rate of 5,5%), with 36% - 54%
IRR range.
•
•
•
All – in cost margin of between 33,6% and 53.9% (All–in
cost margins of above 25% are considered as healthy)
Reasons:
• Low operating costs as a result of the proposed mining method
and shalloworebody;
• Small sustaining capital expenditure;
• Fixed coal price as received frompower plant.
• The high all-in cost margin is indicative of the robustness of the
Project.
Mechanised continuous surface mining technology ensures
low mining cost and accurate mining.
A capital investment of between USD38 million and USD73
million is required subject to mining option selected
Project payback period, between 2.6 and 3.65 years.
The Project is most sensitive to coal price and operating cost.
• Full (Definitive) Mining Feasibility Study currently being executed
by MINXCON scheduled for completion by the end of Q2 2016
Mechanised Continuous Surface Miners
ensure coal delivered on specification to
power station – no need for washing or
crushing
March 2016 12