Mining and energy company, Intra Energy Corporation
(ASX:IEC), has entered into an agreement with the Tanzanian government.
This deal requires Intra Energy to hand over 10 square kilometres of its coal tenements in the Ngaka Coal Fields to Dangote Industries, Africa’s biggest cement producer – apparently with no talk of payment finalised yet.
This deal is the result of a directive issued by Tanzanian President, Dr John Magufili, on 5 March – ordering the Ministry of Energy and Minerals to provide Dangote with its own coal mining area.
Currently, mining operations at the coal fields are being performed by Tancoal Energy – a company in which IEC owns a 70% stake. The remaining 30% is owned by the state-owned National Development Corporation.
Intra Energy says that Tancoal has advised the Ministry of Energy and Minerals that it reserves its legal rights and insists that due compensation be paid to Tancoal for costs expended on the area to be given up.
This morning, shares in Intra Energy are at 1.2 cents.
