Intra Energy Corporation Limited (IEC), an Australian Stock Exchange-listed developer of coal with a focus on Africa, has acquired three Exclusive Prospecting Licences (EPL) for Consolidated Mining Industries (CMI) in Karonga at $800 000 (K292 million).
CMI also runs an operational mine, Nkhachira Coal Mine close to the largest mining project in Malawi, Kayelekera Uranium Mine.
IEC has since has established a joint venture company Malawi Coal Mining (Malcoal) in which it has 90 percent interest and CMI has 10 percent free carried interest.
The three EPLs were granted to CMI by the Malawi Government and cover a combined area of 84.7 square kilometres while the mining licence covers an area of two square kilometres.
“Intra Energy is planning to expand the operational mine this quarter [January to March]. 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,” says a statement from the company.
A drilling programme 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.