Is there anyone else following this stock? Just dipped my toe in the water in light of the new infrastructure agreement with Rio Tinto and the 157% resource upgrade. With India being the primary target getting to coal to the coast is the biggest challenge given that the resource is to be mined by open cast. Should the anticipated coking coal materialise that would be a further enhancement.

NCONDEZI COAL COMPANY LTD
("Ncondezi" or the "Company")

Coal Resource on Ncondezi Project Upgraded to 4.7 Billion Tonnes and Update on Other Licences


Ncondezi Coal Company Limited (AIM: NCCL), a coal exploration and development company with coal assets in the Tete Province in Mozambique, announces a coal resource update on the complete Ncondezi Project including coal resources from previously excluded East, West and River blocks as part of the Company's on-going work programme to complete a definitive feasibility study ("DFS") by Q3 2012 (the "DFS Work Programme").



Highlights:

· Total JORC coal resource on the Ncondezi Project upgraded to 4,655 million tonnes1 as a result of additional coal resources being classified on the East, West and River blocks

- Maiden coal resource of 716 million tonnes1 classified on the East Block, of which 65% is classified in the indicated category

- Inferred resources of 1,203 million tonnes1 and 898 million tonnes1 classified on the West and River blocks respectively

· Represents an increase of 157% compared to maiden 1,809 million tonnes1 JORC coal resource classified in February 2010

· Includes 1,338 million tonnes of coal classified in the indicated category, a 108% increase over the measured and indicated resources classified in the 2010 maiden resource

· 4,071 million tonnes of the updated coal resource occur at depths of less than 250m below surface and are considered potentially mineable by open pit

· Only the South, North, Central and East blocks will be included in the DFS, representing 2,555 million tonnes1 of coal, of which 52% is classified in the indicated category

· East Block coal zones are identified at surface and extend below 340m

· Wash yields indicate that the East Block has higher quality coals with higher yields compared to other blocks in the project






Graham Mascall, CEO of Ncondezi Coal Company, commented:

"The increased resource estimates represent a significant development for the Ncondezi Project and are a clear indication of its full potential. All resource blocks on the Ncondezi Project have now been modelled, and we are pleased to note that of the 4.7 billion tonnes classified, 1.3 billion tonnes has been classified in the indicated category which is eligible for transition into mineable coal reserves. The East Block's size, classification and higher average product yields suggest that it will form a significant part of the final mine plan. The next phase of the DFS work programme will focus on mine optimisation and scheduling. Further updates and guidance on the Ncondezi Project will be made as information becomes available during the year, with an update on coking coal potential expected in the next 4 to 6 weeks."



Ncondezi Project Resource Update

The DFS drill programme, completed in September 2011, identified six discrete coal blocks within the Ncondezi Project area that contained coal at depths amenable to open pit mining. These blocks are identified as the North, South, Central, East, West and River blocks. This announcement includes the updated and maiden resources for the East, West and River blocks.


Following the provisional resource estimate announced on 21 December 2011 from the Company's independent geological consultants, Mineral Corporation Consultancy (Pty) Ltd ("TMC"), TMC have now completed geological modelling on the final three coal blocks, East, West and River blocks, and have provided an updated JORC resource classification for the whole Ncondezi Project.

For the East Block, a coal resource of 716 million tonnes2 has been classified, of which 465 million tonnes2 (65% of total resource) is classified in the indicated category. For the West and River blocks, where drilling has been completed to a lesser drill hole spacing, inferred resources have been classified of 1,203 million tonnes2 and 898 million tonnes2 respectively.

The total JORC coal resource on the Ncondezi Project is now estimated at 4,655 million tonnes3 categorised as 1,338 million tonnes3 indicated and 3,317 million tonnes3 inferred resources. Of this, 4,071 million tonnes of resource occur at depths of less than 250m below surface and are considered potentially mineable by open pit. The resource upgrade represents an increase of 157% compared to the maiden 1,809 million tonnes3 JORC coal resource classified in February 2010.

January 18th, 2012



NCONDEZI COAL COMPANY LTD ("Ncondezi" or the "Company")

Ncondezi to partner with Rio Tinto Coal Mozambique in new study for an integrated transport corridor development in Mozambique


Ncondezi Coal Company Limited (AIM: NCCL), a coal exploration and development company with coal assets in the Tete Province in Mozambique, announces the signing of a new rail and port infrastructure agreement as part of the Company's strategy to export coal from its Ncondezi Project.



Highlights:

· Ncondezi has signed a new rail and port infrastructure study agreement ("the Agreement") with Rio Tinto Coal Mozambique ("RTCM"), a wholly owned subsidiary of Rio Tinto plc ("Rio Tinto"), and Minas de Revuboe ("Revuboe") to further study greenfield port and rail options and related infrastructure (together the "Integrated Transport Development Project" or "ITD Project"). This is a continuation of the jointly funded order of magnitude infrastructure study ("OoM Study") which was completed in Q4 2011

· RTCM will lead the necessary study work required to determine the feasibility of the Integrated Transport Corridor

· The ITD Project represents a scalable solution with the potential to provide coal export capacity of between 25Mtpa to 100Mtpa as well as provide broader economic and social benefits to the people and agricultural industries of Zambezia Province

· The ITD Project has the potential to be the lowest cost rail transport option for exporting coal from the Tete Province, as it is expected to be the shortest rail distance to port and will utilise new and modern infrastructure to maximise economies of scale

· The Agreement entitles Ncondezi to an export allocation on the ITD Project for all of the planned 10Mtpa export coal production from the Ncondezi Project

· Ncondezi will not be required to contribute capital to the ITD Project feasibility or development capital costs

· Ncondezi will have the option to negotiate take-or-pay agreements with the ITD Project operator once the necessary feasibility and other study work is completed and a decision is made to implement the ITD Project



Graham Mascall, CEO of Ncondezi Coal Company, commented:

"Signing of the Agreement with RTCM and Revuboe represents a tremendous opportunity and step forward for the Company in securing rail and port capacity for the future export of coal from our Ncondezi Project. Rio Tinto has significant experience in developing rail and port infrastructure projects around the world, and I believe that it is best placed to lead and implement this project in Mozambique."



Ncondezi has signed an agreement with RTCM, a 100% subsidiary of the Rio Tinto Group, which provides rights for Ncondezi to access up to 10 Mtpa of rail and port capacity on a proposed greenfield rail and port project to be developed in Mozambique, the ITD Project. The Agreement allows the parties to build upon the results of the OoM Study and move the ITD Project towards implementation.

The agreement continues the infrastructure evaluation study completed through 2011 with RTCM and Revubue.

The OoM Study was finalised and presented to the parties during November 2011, and identified a preferred port and rail solution in Mozambique approximately 500km from Tete and north of the Zambezi River mouth. The port developed will be a deep water port capable of handling up to cape size vessels with expandable capacity from an initial 25Mtpa upgradable to 100Mtpa. The ITD Project is expected to offer the lowest transport costs for the export of coals from Tete, as it will employ modern and proven rail and port technologies, cover the shortest rail distance to port, and benefit from economies of scale as capacity is ramped up. The results of the OoM Study also demonstrated that the ITD Project will provide positive social economic opportunities and additional potential, and is environmentally sound.

RTCM will lead the necessary study work required to determine the feasibility of the Integrated Transport Corridor. Ncondezi will not be required to contribute to the project feasibility or development capital costs, other than for the infrastructure required for the Ncondezi Project's sole use to connect a rail spur with the ITD Project rail network.

Prior to proceeding with the construction and development phase Ncondezi will be required to enter into commercial arms length take-or-pay commitments with ITD Project operator in relation to phasing of coal production and allocating tonnage over a ramp up period. Ncondezi expects this to follow negotiations with coal off-takers for its export coal products from its Ncondezi Project in Tete.

More information with regards to timing for the completion of the feasibility work and target construction and operation dates will be provided in the coming months as the studies progress. It is the objective of RTCM, Revuboe and Ncondezi to work towards expediting the ITD Project as soon as possible.

Given that the Ncondezi Project is targeting first production in 2015, the Company remains optimistic about the ability to also access rail and port capacity for transport of its coal on the Sena/Beira and Nacala corridors, which are to be expanded during the next few years.

Any other thoughts on this company would be welcome.

Has the makings of a good trading day so far, mainly blue at present. Anybody else into these? I could use some alternative views if there are any.

LISTEN: Hanno Pengilly, Chief Development Officer of Ncondezi Energy, provides an update on the power plant and resource upgrade

Click here to listen