andy lloyd - icvl mozambique - the geology of the moatize coal basins
TRANSCRIPT
THE COAL DEPOSITS OF MOZAMBIQUE P R ES E N T ED BY A N DY L LOY D
D R AW I N G O N F F F P R ES E N TAT I ON S F R O M : -
• J O H N H A N COX ,
• LO P O VA S CO N CE L ES ,
• & G AV I N A N D R E WS .
Overview Regional Geology
Karoo Basins of Mozambique • Early History
• Tectonic Setting
General Geology
Tete Province focus
Exploration learnings
Summary • So what’s in the ground
• Geology vs Economy
Elephants in the room or
Elephant country?
What do we mean by coal Geologically • Coal (from the Old English term col, which has meant "mineral of fossilized
carbon" since the 13th century) is a combustible black or brownish-black sedimentary rock usually occurring in rock strata in layers or veins called coal beds or coal seams. The harder forms, such as anthracite coal, can be regarded as metamorphic rock because of later exposure to elevated temperature and pressure. Coal is composed primarily of carbon along with variable quantities of other elements, chiefly hydrogen, sulphur, oxygen, and nitrogen.
Economically • That which can be mined for economic benefit.
And for Mozambique? • Which numbers are to be believed?
• What numbers are important?
Extractable Coal Economic Coal Un-economic Coal Geological Coal
Early History First coal documented in 1859 by Richard Thornton on one of Dr Livingstone’s expeditions.
“Mr. Thornton stated that the coal, which was dug by natives from an outcropping seam on the bank of the River Muntizi, showed no tendency to cake; was free-burning; contained very little sulphur or iron although a large proportion of ash along with a small amount of gaseous matter “
Early geological investigations in the area were undertaken by Guyot (1882), Lapierre (1883), Zeiller (1883), Kuss (1884) and Potonié (1899). These authors mainly described the lithostratigraphy of coal bearing seams in the lower part of the Karoo Supergroup around Moatize.
Commercial mining in the Moatize Coalfield commenced in the early 1900s on a small scale.
Regional Geology
Extensional Tectonic Setting
Karoo Basins of Mozambique
Metangula Coal Field
~34
0 m
Tete Province
Chicoa – Mecúcoè
Sanagoe - Mefidizi
Moatize
Basement Contact
Vúzi Formation - Tillites
Moatize Formation
Chipanga – The 1st thick coal
Matinde Formation
Cadzi Formation
Productive Sequence Outcrop
Facing East
Possible Chipanga Tillites
Low angle faults – possibly 100m’s of throw
Channel Roof
Building a Facies model
• Re-logging old core
• Integrating with Geophysics
• Looking for geological fundamentals
Just Productive Series coal? Coal Outcrop in
Matinde Formation
Coal development in the tillites
Pro
du
ctiv
e
Mat
ind
e
Up
pe
r
ICVL’s Zambeze Geology
A
A
B
B
C
C
Faulting on Macro and Micro scale
Geology –D Seam (Upper Chipanga)
View of North wall and D-Seam
Erosional “roof” contact
Fining up sequence of a migrating channel
Resulting in a thinner coal seam
Channel 1 Channel 2
Coal Bearing Unit
Lachelt (2004)
VALE (2009)
Moatize Sections
Generalised section through Moatize Basin
Gavin Andrews, 2014
Intrusives
Coal Seams
Drilling Challenges
Productive Sequence – formational Cartoon – ICVL Seam names.
A
B
C
D
E
F
G
H
I
J
Chipanga
Palaeontology
Vertebraria Paracalamites Glossopteris
Palynology
Palynology Protohaploxypinus-Vittatina-Guttulapollenites-
Lueckisporites Sub-Assemblage
Vu
zi
Pro
du
ctiv
eL
ow
er M
atin
de
Up
per
Matin
de
Converting stratigraphy to time
MUCANHA-VÚZI SANÂNGOÈ MOATIZE
~34
0 m
~20
0 m
~75
m (
?)
Metangula
~34
0 m
Coal Type log comparison
What about the coal, are they seams and do they have ply´s?
Coking, Thermal, Domestic What are the different types of coal?
Vitrinite bands in mixtures of bright to dull coals within bands of siltstone and mudstone.
Coking Coal – Thermal Coal - Discard
The finer you go the more coking coal you get.
It´s a question of liberation and processing efficiency – more from Mark Cresswell later.
Properties of Mozambiquan coal In general, the Mozambican Permian coals are: • Rank: Bituminous (from high to low volatile bituminous) coals, occasionally
anthracitic
• Type: Vitrinite dominant, Very low Liptinite content,
• Ash yield : generally high,
• Minerals are finely intergrown with the organic matrix, thereby posing difficulties in liberation during beneficiation
Petrography • Dominance of vitrinite; Low content of liptinite (Mucanha-Vúzi) or almost
absence (Moatize-Minjova-Mutarara).
• References to the petrography of coals from other regions were found only for Metangula coals:
• Chipanga Seam (Benga): V content of 72% (Top), 77 & 78% (Middle) 72 & 79% (Bottom)
• Mineral-rich (28% - 48%);
• Vitrinite varying from 36% to 51%;
• Liptinite in the range 2% to 3%
Coal Type log • Up to 60 coal seams in the basin
(seam >1m)
• Seams thickness’s up to 90m
• Interburdens average 40-50m
• Coal characteristics • Sulphur – 1%
• Phos – 0.07%
• Vols – 20-35%
• Coke Yields – 5-60%
• Rank – 0.8-1.7
• Additional Thermal Yields – 10-30%
• Potential resources • Faulted
• Seams show varying continuity
• Intrusions become more prevalent to the east
Vu
zi
Pro
du
cti
ve
Lo
wer
Mati
nd
eU
pp
er
Mati
nd
e
ICVL Zambeze
ICVL Benga Vale
ICVL Tete East
Eta Star
Cahora Bassa
P%
S%
Fluvial River channel system?Discordant
lenses
Marsh
Marsh system with thick (approx. 20-30m) coal
packages consisting of interbanded coal and
mudstone. Sandstone partings commonly display
coarsening up sequences.
Thicker upper
seams0.03 0.9
River Channel
and Marsh
Transition zone between the underlying river
channel system with a series of abandoned
channels and the overlying marsh system with
thick mudstone dominated packages.
Discordant
lenses N+0.02 1.1
FluvialRiver channel system with a series of abandoned
channels. Seams are less correlatable.J,K,L,M 0.01 1.0
H,I 0.08 0.9
F,G 0.06 0.8
E 0.08 0.8
D 0.08 0.9
C 0.11 0.7
B 0.01 0.9
A 0.00 1.3
Carb
on
ifero
us
Vu
zi
Fm
.
Glacial Glacial till deposited by melting glaciers.
Meso
Pro
tero
zo
ic
Ste
nia
n
Intrusive
The Tete Complex is the basement rock
consisting of serpentinised gabbro; the basement
includes intrusive stocks and plutons.
Mati
nd
e F
m.
Post Glacial outwash fans and channels. Lake
and marsh system at top of sequence containing
C-seam.
River channel system with correlatable seams.
Braided DeltaBraided delta system with interchannel coal
formation.
Pala
eo
zo
ic
Fluvial
Era PeriodSuper-
groupGroup
Depositional
Environment
Mo
ati
ze F
m.
Perm
ian
Karo
o
Lo
wer
Karo
o
Post Glacial
Depositional ProcessCoals
ContainedFormation Stratigraphy
Coal Characteristics
Product Coal
0
10
20
30
40
50
60
70
1.3 1.35 1.4 1.45 1.5 1.55 1.6 1.65 1.7 1.75 1.8
%
WHOLE SEAM DENSITY (SG)
Schematic of Coal Seams and Yield
% of Seams in Basin Coking Coal yield
Coal Qualities Moatize: • increase in rank with depth: from 1,28% in Grande Falésia (Bituminous B) to
1,51% in S. Pinto (Bituminous A).
• %VR varies from 1,16% in Top Chipanga Seam to 1,27-1,29% in Middle Chipanga and 1,27-1,37 in Bottom Chipanga, i.e., increases with depth.
Minjova:
• %VR ranging between 1,36-1,43% - MVB (or Bituminous B) to these coals
Mucanha-Vúzi:
• lower rank than Moatize, %VR that varies between 1,00-1,10%, approximate border between HVB-MVB (Bituminous B).
Mutarara:
• %VR between 1,93-3,86%, showing an anthracitic stage, some coal in LVB (many dolerite intrusions)
Metangula:
• No information available on reflectance of coals from the Basin. Reports refer to Bituminous C-D
http://portals.flexicadastre.com/mozambique/en/
Active exploration licences @20th July 2015
Exploration Focus Vale
ICVL
Minas de Revuboé
Beacon Hill
Ncondezi
JSPL
ENRC
JSW
ETA Star
Midwest
Coal of India Limited
KingHo
Various Private Companies
Resources and Reserves Lack of reliable numbers fail to illustrate the real situation.
The Mining Directorate of Mozambique (DNM, 2012) compiled a table of coal reserves (JORC) with the information provided by the coal companies and with more recent updates:
TOTAL of 29,342 Mt, • Measured/Indicated – 11,924 Mt • Inferred – 17,248 Mt
Notes • Numbers apply to 12 licenses only from Moatize-Ncondézi-Mutarara & Sanângoè-
Mefidézi • Chicôa-Mecúcoè: CAMEC (2009) refers to 3,6 Bt of coal reserves (included in
Sanângoè-Mefidézi figures • Niassa Province, no information
Data originally presented by Lopo Vasconceles in 2014
How much “coal” is there in Mozambique?? • Possibly >30Bt of Geological Coal • Moatize (Vale) – >4Bt
• ICVL – >10Bt
• Minas de Revuboé – 1Bt
• ETA Star – 2Bt
• Jindal – 0.7Bt
• KingHo – 0.5Bt
• ENRC – 3Bt
• How much is extractable? • Yield – 30%
• Interburdens – 40-50m
• How Deep?
• At current coal prices?
• At current Infrastructure costs?
Extractable Coal
Economic Coal
Un-economic Coal
Geological Coal 30Bt
??Bt
Reality Check – Cost of product
Infrastructure
Rail Opex
Rail Fees
Port Costs
Capex
Mining
Waste Mining
Coal Mining
CHPP
Rail load out
Capex
Royalties
Taxes
Comparable to Global Average?
Cost components in Coal Mining
Waste Mining
Coal Mining
CHPP
Rail Costs
Rail Fees
Port Costs
Current Coal Price
3 year average
Coal Price
Cost Pit to Port
30Bt of Coal – 5% Economic
Zoom o right Expanded on right
30Bt of Coal – 15% Economic
Expanded on right
30Bt of Coal – 25% Economic
Zoom on ight Expanded on right
Elephants – “country” rather than “room” Significant resources – multiple Bt resources.
But – costs structures need to be addressed.
Mozambique Coal is part of the Southern African Karoo system, multiple mines tackle similar challenges – learn from them.
There is now technical expertise in coal mining in Mozambique, it should be utilised.
Going forwards – unlocking value needs:- • The right people
• The right balance of risk – smart rather than prescriptive
• The right expertise
• Honour the geology
• Understand the products and markets
What does this mean for Mozambique? Coal resource base changes on daily basis – but the geological coal does not.
Mozambique Factors • Mining Costs
• Infrastructure
Global Factors • Coal Price
The Moatize basin has the potential to produce a large percentage of the world’s Coking coal, but only if the current cost regime is reduced
and the coal price recovers.