The Company has a 70% interest in two mineral exploration licences situated in the Zambeze Coal Basin in Mozambique and in July 2011 announced an agreement to acquire an 80% interest in a third exploration licence, 2738L (“Songo” project), also within the Zambeze Coal Basin.
The combined tenement area held by the Company is approximately 609km2, spanning three tenements, 2738L (“Songo” Project) 3245L (“Tete West” Project) and 3246L (“Muturara” Project). 2738L is located 115km west of the city of Tete and 40km southwest of Jindal licence 1218L where a 700 million tonne coal reserve has been identified. 3245L is located 12km west of the city of Tete and extends over 182km2, and lies immediately southwest of Rio Tinto tenement 946L. 3246L is located 58km southeast of the city of Tete and covers approximately 202km2. The tenement is located 45km southeast of the Moatize Coal Mining Camp owned by Vale.
The Zambeze Coal Basin is an emerging and highly prospective coal region that is within economic reach of the East African coast. Globally significant resource companies including Rio Tinto (LON:RIO), Vale, Jindal Steel and ENRC have undertaken coal exploration and development projects within the basin.
Mozambi Coal Ltd Tenement Map