Map showing Kencoal Ltd concession area
Kencoal Limited concession lies to the south of the entire Mui Basin, presently covering an area of 60 sq. kms, located 249 km east of Nairobi. Kencoal Ltd was registered in 2009 as Mui Basin Mining Company Ltd to Explore for Coal in the southern tip of the greater Mui Basin
In September 2013, we drilled our first well up to of 105m and intercepted a coal occurrence between the depths of 85-105m. In 2014, we drilled a second well, a core well, up to a depth of 100m and intercepted a coal occurrence between the depths of 75-100m.
In 2015, we drilled a total of fourteen wells, of these, two wells did not intercept coal.
In 2016, we drilled an additional nine wells, (2 RG wells, and 7 core wells) and a borehole, one RG well did not intercept coal.
The process was staggered to include preliminary geological survey, grid geochemical sampling, geophysical survey and exploratory destruction drilling. The first phase of exploration involved delineation of the basin and geological survey of the licensed concession. The second phase involved grid sampling and stream sampling of a section of the licensed concession to try and understand the mineralization in the area. It also involved structural analysis of the basin to try and locate a suitable drill site based on surface observations. The third phase involved exploratory destructive drilling at one of the selected sites during the second phase. Though intuitively chosen, the drilled borehole penetrated thin seams of carbonaceous to bituminous coal at depths of 85m.
The coal we have intercepted is Lignite coal, with calorific value between 4400 kcal/kg and 6200 kcal/kg. From the initial exploration drilling we estimate that we have a coal deposit of 200 million metric tons.
We can confirm that we have two occurrences of coal. The first occurrence of coal is between depths of 20-35m and has a combined coal seam of 5m. The second occurrence of coal is between depths of 70-105m and has a combined coal seam of 12m. The two occurrences of coal spread out in area of 8 Sq. Kms.
During our exploration four of the coal exploration wells intercepted base metals: Gold, copper, zinc, nickel, cobalt, manganese, cobalt and tungsten beneath the coal.
Three Trial Pit Following the completion of our drilling program, we identified 3 wells that has intercepted coal at a depth of between 17m; and 23m one in Ngungi and two in Kasunguni. Trail Pit 1 In August 2020, we commenced the digging of the first trail pit, we expect to complete the first pit by December 2020.
Two year price movement of coal between January 2016-January 2018
In 2019 Kencoal Ltd began trading with imported coal from Tanzania and South Africa
Coal Mining would change the face of Kenya
Produce affordable electricity
Revive manufacturing through affordable electricity
Create an industrial park in Kitui
create Employment
Total import of coal
In 2019 Kenya imported approximately 1,200,000 thousand metric tons of coal.
We anticipate the demand to continue growing especially
In 2019 the total value of imported coal into Kenya stood at $155 million dollars
Cost of imported coal to Kenya
The global price of coal is on the upswing averaging $54 per ton
In Kenya the cost of imported coal stands at
$125 per ton for large scale importers accounting for 90% of total imports from South Africa
$165 per ton for small scale importers accounting for 10% of total imports from Tanzania
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