INTRA ENERGY CORPORATION LIMITED 30 November 2015
Company Announcement Officer Australian Securities Exchange
Dear Sir/Madam
Intra Energy Corporation Limited (ASX:IEC) is pleased to announce that it has executed a memorandum of understanding (MOU) with Sinohydro Corporation Limited ('Sinohydro') to assess the potential joint development of its 200 megawatt (MW) Ngaka coal-fired power mine mouth project, located at the Tancoal mine in Tanzania. The MOU sets out the intention of IEC and Sinohydro to complete a feasibility study as well as a financing proposal for the project, and to negotiate a Joint Venture Agreement for the development of the project.
Project Ngaka will use high quality lower sulphur thermal coal from IEC's subsidiary Tancoal Mine located in south western Tanzania. It is proposed to site the generating facilities adjacent Tancoal's northern coal deposit while the southern coal deposit will continue to meet the quickly growing industrial and cement requirements of Tanzania and its neighbours.
Sinohydro is a driving force behind China's industrial development. It has 130,000 employees and provides one-stop services for financing, engineering, purchasing, implementation and operation of projects for power, water conservation, transport infrastructure and civil works such as public and private buildings.
IEC believes that Sinohydro will be an excellent strategic co-developer for Project Ngaka.
IEC's incorporated joint venture in Tanzania, Tancoal, is a joint venture between IEC (70% interest) and the National Development Corporation (30%), a parastatal of the Government of Tanzania. Tancoal has JORC coal resources of 423 million tonnes, sufficient to fuel substantial power station development in Tanzania. Project Ngaka can generate sufficient and reliable electricity and be replicated in stages to up to 400MW to support the growth needs of the Tanzanian power generation sector.
According to the World Bank, only 15 per cent of Tanzania's population of approximately 50 million people have access to reliable electricity. Tanzania currently has a generating capacity of 1,041MW, which is insufficient to meet demand.
The Chairman of IEC, Mr Graeme Robertson commented:
'IEC has been keen to develop project Ngaka for several years in recognition of the importance of reliable base load coal-fired electricity generation is to the energy mix supporting rapidly growing Tanzania. It has been equally important to develop the relationship with a major international power developer to support the project and Tancoal as its fuel supplier. In Sinohydro we believe we now have the right partner to progress the project with the newly elected Government of Tanzania and the generating authority.'
For further information please contact:
Tarn Brereton
Chief Executive Officer
Intra Energy Corporation Limited
M (+61) 419 924 260 (Australia) | M (+255) 765 747 743 Africa)|www.intraenergycorp.com.au
About Intra Energy
Intra Energy is a responsible developer and producer of thermal coal in Eastern Africa and is listed on the Australian Stock Exchange (ASX:IEC). Intra Energy's focus remains 'African coal for African growth' and is the only operating thermal coal miner in Eastern Africa. Its flagship coal project is the Tancoal mine in the Ngaka coalfield of Tanzania, operated by Tancoal Energy Limited, a joint venture with the National Development Corporation of Tanzania. Intra Energy has made significant progress with its Eastern African regional expansion strategy and maintains cost effective and efficient operations to remain a low cost producer in this dynamically growing region where it occupies the prime supply position.
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