Gordon Stein, CFO of CleanTech Lithium, explains why CTL acquired the 23 Laguna Verde licenses. Watch the video here.
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Thanks very much CF73. Your summaries below have helped to ease my fears. Just hope we can realise the value in a timely manner before the MM's get bored and start the downward slope again. I am down about 40% on my original investment but have no funds to average out at the moment.
BENJAN1, sense you have a great deal of knowledge about the company and its projects. Keep your posts coming.
We talk a lot about the main power project, 300MW, 600MW etc but forget to properly factor the coal/ coal mine. Especially how the coal project has an enormous world class coal deposit, both in quality and quantity.
The World Bank Doc. on the Interconnector Project, also explains,
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"Mozambique also has world class reserves of coal. Part of these reserves have sufficient quality to be exported, while a significant portion can be used for domestic power generation."
http://documents1.worldbank.org/curated/en/914891569031288591/pdf/Mozambique-and-Malawi-Regional-Interconnector-Project.pdf
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It mentions export as am guessing that is the intention - for CMEC to export some of it. Worth remembering, also, the agreement for survey drilling work at the coal mine, that CMEC agreed to contribute $1.8m towards.
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" 16 November 2020: Ncondezi Energy Limited ("Ncondezi" or the "Company") (AIM: NCCL) is pleased to announce that further to the announcement on 12 November 2020, it has signed a Supplementary Agreement to the Joint Development Agreement (the "SA") with China Machinery Engineering Corporation ("CMEC") pursuant to which CMEC will fund specified accelerated development works at the Ncondezi 300MW coal-fired power project and coal mine in Tete, Mozambique (the "Project"). "
And,
" Accelerated development work will focus on a number of milestones, including:
"Additional survey drilling required by CMEC to complete Chinese Government approvals for their investment in the Project"
https://www.investegate.co.uk/ncondezi-energy-ltd--nccl-/rns/-1.8m-agreed-cmec-accelerated-development-budget/202011160937564229F/
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CMEC clearly want to defne for themselves, to enable an acceptable end value/ sale price with NCCL.
From NCCL website:
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The mine has a defined a substantial JORC coal resource of 4.7 billion tonnes and a Measured Resource of 120 million mineable tonnage in situ (“MTIS”) has been classified by the Company’s geological consultant, the Mineral Corporation Consultancy (Pty) Ltd, in the South Block in accordance with the JORC Code. This follows the completion of an infill drilling programme completed in September 2013. The drilling was focused over the planned open pit mining area within the South Block that was identified as the most economical to supply coal to the power plant.
In order to provide a bankable Coal Sales Agreement to the power plant, the mine needed to demonstrate sufficient coal resources in the Measured Category to supply the 300MW power plant for 25 years plus a 40% contingency, equivalent to 70 million mineable tonnes in situ. The upgraded resource has exceeded this target with sufficient additional Measured Resource to theoretically supply an additional 300MW (600MW total) power plant for 25 years."
https://www.ncondezienergy.com/the-coal-mine/
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Entire project, coal/ coal mine and coal-fired power project has huge value.
The Ncondezi project provides China with with an ideal opportunity to promote clean coal power as the only economically viable option to provide the increasing demand for electricity in developing countries.
Will be interesting to see how this US-China climate meeting concludes.
https://www.bbc.co.uk/news/science-environment-56739896
Worlds two biggest polluters pointing the finger at each other!
Great work CF73 in putting this note together. I remain confident this will happen and understand the caution in some quarters in respect of timing, however the stars are now aligned for this project to come to fruition.
I continue to hold and added more last week, I’ll continue to do so whilst shares down at this level, as it’s not reflective if the risk/ reward profile.
Keep up the good work!
Would add the following points,
1. The Interconnector lIne runs right literally next to where our project is, as other trusted LTHs have shown via maps. And also Hanno has his self said:
Where Hanno said in a Praoctive Interview:
"…the Mozambique-Malawi interconnector [line], that reached financial close a few weeks back, that’s a very important line, connecting Malawi with the Mozambique grid, right around where our project is located.”
https://www.proactiveinvestors.co.uk/companies/news/925908/ncondezi-energy-ceo-updates-as-it-submits-new-transmission-integration-study-925908.html
2. Where according to Hanno (Proactive Interview)
“…other power plants that were looking to be developed at the time we last did the [transmission] study, have fallen away."
https://www.proactiveinvestors.co.uk/companies/news/925908/ncondezi-energy-ceo-updates-as-it-submits-new-transmission-integration-study-925908.html
3. NCCL inputted in the scoping and development work for the Interconnector lIne with their transmission study. See Tweet:
"#Mozambique takes another step towards expanding the transmission network into #Malawi #NCCL's recently completed transmission study accounts for these exciting developments ensuring an optimal supply strategy into the grid
Moz"
https://twitter.com/Ncondezi_Energy/status/1291659356841431040
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So, NCCL have supported work on transmission infrastructure leading to the finalisation and approval of the Moz-Malawi Interconnector Line, that the World Bank has reached Financial Close, for the Interconnector project to come on line by 2022, to carry coal-derived power out of Tete by 2023, as per Moz's Integrated Power System Master plan (which requires 300MW by 2023; another 300MW by 2026; further 300MW by 2034; and final 300MW by 2038 - making a total of 1200MW out of Tete coal).
The World Bank Doc also mentions that Tete has enough world-class coal to use domestically and to export (I know osme have mentioned export possibilities).
Current quite around the main project is all about determining key values, from Tariff to (imo and a few others), the subscription price (and is why Synergy involved).
Also:
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40. On the Mozambique side, this would include construction of approximately 142 km of a 400 kV transmission line, with second phase to be strung by 202529 including a 1.7 km river crossing across the Zambezi River in Tete, the extension of the existing Matambo 220 kV substation, and construction of a new 220/400 kV, 500 MVA substation also at Matambo including the installation of a control monitoring system. It will also include installation of 220 kV transmission line connection between the new 220/400 kV 500MVA substation at Matambo and the existing Matambo 220 kV substation. In addition to the proposed IDA grant, this sub-component will be co-financed with a World Bank-administered grant from the Norwegian Trust Fund (NTF) and a grant from the Government of Germany to be administered by the German Reconstruction Credit Institute (Kreditanstalt fur Wiederaufbau, KfW).
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Our project involves serious big players, the likes of which folks on AIM don not normally see. They have progressed signficantly in the infrastructure front already, expecting to conclude some of the key tendering soon, and to commission the Interconnector Line and Substation by end of 2022, just in time for when the first 300MW is meant to come on line, carrying coal-derived power out of Tete, on to Malawi.
With this in mind, it begs one key question: why would they go as far as this if a) there was to be no new power
Below is an excerpt from a World Bank Document produced for the Interconnector Project (link provided).
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II. PROJECT DESCRIPTION
34. The proposed project aims to establish a transmission link between Malawi, and Mozambique to meet increasing electricity demand in Malawi and create opportunities for trading in the SAPP. The 218 km, 400 kV high voltage alternating current transmission line will start at Matambo in Tete Province in central Mozambique and will cross the Malawian border into Mwanza and end at Phombeya in Balaka District in southern Malawi. The substation works required in Mozambique and Malawi are also included in the project (p.18)
http://documents1.worldbank.org/curated/en/914891569031288591/pdf/Mozambique-and-Malawi-Regional-Interconnector-Project.pdf
This bit again, as is important.
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“The Mozambique-Malawi interconnector reached financial closure in September 2019 and is at construction stage. The target is to commission this project by the end of 2022.
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We know tendering to conclude very soon. And then they got to build it and have it ready for the main power project!
A significant mention of the Moz-Malawi Interconnector Project/ Line, that runs right next to our project, that our tranmission signficantly inputted into! (2 week old article, but fairly new news, for us).
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David Muchagoneyi
Harare – The SADC region’s quest for energy self-sufficiency is on course with 17 projects at various stages of development under the Priority Action Plan for Programme for Infrastructure Development in Africa (PIDA PAP 2).
"The 17 are part of 63 projects being undertaken in the region."
"Notable progress has been recorded in the preparation and implementation of priority interconnector projects to connect Angola, Malawi, and the United Republic of Tanzania to the Southern African Power Pool (SAPP) grid."
“The Mozambique-Malawi interconnector reached financial closure in September 2019 and is at construction stage. The target is to commission this project by the end of 2022. The Zambia-Tanzania interconnector includes several components and is at construction phase on both the Zambian side and Tanzanian side where the two transmission lines were designed to converge near Nakonde Border by 2022,” SADC said this week."
https://www.southerntimesafrica.com/with-new-projects-sadc-powers-up/