1 Marketing Rights Agreement (MRA)SUNRISE MINING LIMITADA ( Formerly Osho Gremach Mining Limitada )
2 Sunrise Mining LimitadaPRIME HARD COKING COAL MINE Mining Licenses – 7254C Sunrise Mining Limitada is a formerly Osho Gremach Mining, Limitada which is privately owned Mining Company Holding Mining license 7254C located in the area of Moatize - Minjova Coalfield at Mozambique.
3 PRIME HARD COKING COAL MINETolling Option :- A tolling option i.e. marketing option, where we give marketing rights for 4 to 6 years with a discount on index. Also we can appoint a Mining Development Operator (MDO) And to Quasi Management Company to run mines and operate banks accounts and investor has to pay money for small amount of the material i.e. handed over at port. Say the investor pays $60 for every ton of coal given at port under his control. Investor then sales the coal at an index pricing of $200 ( variable at a discount ). The mine owner gets the difference through Escrow mechanism. Also, please note that in way the Marketing Rights Holder ( MRH ) pays very little cost, as an entry cost.
4 TONNAGES :- 1ST Option – Guarantee ( Discount to Index )PRIME HARD COKING COAL MINE TONNAGES :- 1ST Option – Guarantee ( Discount to Index ) 1st year Million 2nd year Million 3rd year Million 4th year - 5 Million Total : 9-10 Million Tones over 4 years.
5 TONNAGES :- 2nd Option – Guarantee ( Discount to Index )PRIME HARD COKING COAL MINE TONNAGES :- 2nd Option – Guarantee ( Discount to Index ) 1st year - 1 Million 2nd year - 3 Million 3rd year - 5 Million 4th year - 10 Million Total : Million Tones over 4 years.
6 PRIME HARD COKING COAL MINEFINANCING :- Looking for – US$ 3 million for pure off-take of million tones over 4 years. Open for selling 5% stake at additional US$ 2 million – equivalent to board seat. Thus, total investment would be US$ 5 million for off take of million tones & 5 % stake ( for further stake dilution premium shall be much higher ) Quoted investment numbers are negotiable. Against 3 million, Marketing Rights Agreement ( MRA ) would make investor earn minimum $90 – $100 million over 4 years of contracted tonnages in terms of discount.
7 PRIME HARD COKING COAL MINEFinancing:- Mines owner shall handover the possession of mine to a Quasi Management Company which can be a separate JV company where the Marketing Rights Holder & Sunrise Mining Limitada can have board seat. Marketing Rights Holder can operate the JV company and be a majority shareholder & also can operate bank accounts and do site operation through a Marketing Development Operator on a licensing contract basis. MDO – Joint appointment is acceptable. Joint mine operations – Ready for deputing joint team representing both Sunrise & Marketing Rights Holder , on site for day to day mine operation. Numbers would vary if Marketing Rights Holder wants: - More tonnage allotment & number of years - More % equity stake in the project.
8 Mining Development Operator (MDO)PRIME HARD COKING COAL MINE Mining Development Operator (MDO) Stefanutti Stocks Mining Services Mashova Thyssenkrupp ABB African Minerals ( Barbados ) Ltd. SPRL Dawnus Aveng Moolmans Mits Corp. Redpath Mining ( South Africa ) ( Pty ) Ltd. Mota-Engil Africa B&E International Maxam AEL Mining Services Altaaqa Global Coal mining Over 7212 million tones (Mt) of hard coal are currently produced worldwide and Mt of brown coal/lignite. Coal is mined by two methods: surface or 'opencast' mining, and underground mining.
9 Specification : Chipanga – Premium Hard Coking CoalPRIME HARD COKING COAL MINE Specification : Chipanga – Premium Hard Coking Coal
10 PRIME HARD COKING COAL MINEContinue…
11 Technical Specification : Mozambique – Thermal CoalPRIME HARD COKING COAL MINE Technical Specification : Mozambique – Thermal Coal COKING COAL THERMAL COAL
12 COKING COAL MINES TETE MOZAMBIQUE, AFRICA
13 Changing Scenario of Mozambique: Changing Scenario of Mozambique: The Moatize basin in Mozambique’s Tete is world’s largest untapped coal reserves of coking coal, used in steel production. The Tete province has Coal reserves of approx. 6.7 billion tonnes, of which 3 billion tonnes represent sub-economic or economic grades. Tete could be producing 25% of the world’s coking coal by 2025. PRIME HARD COKING COAL MINE Highlight of the Asset: The block area is 8.80 kms and located just east of the Vale’s Moatize Coal Project, and ETA Star’s license area No. 1068L and also bordering on the North, South & East of the area is Riversdale’s License area. The owner carried out a drilling program during which include drilling on 400 m grid, 11Nos. of confirmatory boreholes (NQ) have been drilled ranging depth mts to 185.1mts. In addition coal analysis was carried out on all cores. The program identified four coal seams ranging thickness from 2 m to 26.7 m confirming Hard Coking Coal with Thermal coal which is already confirmed by bordering Riversdale, Vale & Minas Moatize. Approach to Tenement: Main field camp of the Tenement may be approached from Tete town by two ways distance 58 kms and 83 kms only within one and half hours journey by road. (Location map attached).
14 Reserve Calculation: Coal Evacuation Infrastructure:PRIME HARD COKING COAL MINE Coal Evacuation Infrastructure: Nacala Line: 1200 km rail Tete with Port of Nacala can export upto 22 MTPA. Sena Line: The 660 km Sena railway line runs from Moatize to Beira port has a current capacity of 6.5 MTPA with planned expansion to 20 MTPA. Beira Port: The port connects Sena Rail, in Sofala province with est. 10 MTPA capacity. Macuse Line: A railway linking Moatize to port of Macuse, in Zambezia province with expected capacity of 25 MTPA. Reserve Calculation: On basis of Exploration carried out, 4 Coal seams were established in Block up to drilled depth of 220m below ground level & reserve computed seam wise given as under: - Total 55 bore holes have proposed to define measured reserve as per definition of SAMREC classification. Total 11 core bore holes drilled, which are spread throughout license area, Influence of drilling covered area lithologically vertically as well as horizontally. Depending upon the thickness of coal seam, Four coal seams have been identified which are named as seam 1, 2, 3, and 4.
15 Total Reserve (Tonnage) = 372.69 MT Total Coal Reserve: Total Reserve (Tonnage) = MT Total Reserve (-20% Geological losses) = MT Mineable Reserve (-10% partings) = MT d) Coking Coal (Yield - 35 %) = MT (12 % Ash) e) Thermal Coal = MT (Ash 30%) Raw coal qualities and a single product for gross energy value of 5500 kcal (air dry basis), was determined for each resource block. This relates to gross calorific value of MJ/kg on an air dry basis. The -0.5 mm fraction was not included in any of the coal quality calculations and might be hosting some of the high quality vitrinitic fractions that have good coking coal qualities. PRIME HARD COKING COAL MINE Measure Coal Reserve: Drill spacing for /2400 meters & with support of coal quality data it would be possible to classify resources as "INFERRED” for thick inter bedded coal deposits. Mineral Reserve Estimate: All physical & analytical data given to author seems to be credible & collected within accepted industry standards. The resources were estimated using guidelines by the coal addendum to SAMREC code, namely SANS 10320:2003: The South African Guide to Systematic Evaluation of Coal Resources & Reserves. In situ Tonnage, the full seam is 372 MT.
16 PRIME HARD COKING COAL MINESome of the charts -
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