ASX-listed Tancoal Intra Energy Corporation’s (IEC’s) subsidiary Tancoal Energy, says it has secured additional sales contracts for the supply of coal to customers in Tanzania, Kenya and Uganda.The company advised that sales will increase by 30 000 t in 1H FY14 from four industrial customers alone, adding that the level of other enquiries has also increased. To support the significant increase in sales, IEC revealed that it has commenced the construction of a bypass haul road (expected completion Q3FY14), which it said will aim to reduce the transport costs per tonne to load out facilities and expanding the loading facility for the increased demand. IEC asserted that the capital expenditure for both projects is fully funded from current cash balances.
Further, contracted sales have increased to 3 000 tpm for Q1 FY14 and increased demand is being encountered. To increase mining capacity (150 000tpa) IEC said it would enter into a hire purchase arrangement with equipment manufacturer and supplier Caterpillar for mining equipment to the value of US$1.65 million.The agreement specifies monthly payments for a period of 5 years with 8% interest applied. Meanwhile, the company revealed that it has appointed Tarn Brereton as CEO, effective 1 July 2013. Brereton joined IEC in 2011 and has been responsible for operations in Eastern Africa. He has previously worked for the iron ore division of diversified miner BHP Billiton, NM Rothschild & Sons and Grant Samuel in Australia.