International Journal of Coal Geology 89 (2012) 2–12

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International Journal of Coal Geology

j o u r n a l h o m e p a g e : w w w. e l s ev i e r. c o m / l o c a t e / i j c o a l g e o

New discoveries of coal in Mozambique — Development of the coal resource

estimation methodology for International Resource Reporting Standards
William Hatton ⁎, Anna Fardell
SRK Consulting (UK) Limited, 5th Floor, Churchill House, 17 Churchill Way, Cardiff, CF10 2HH, UK

a r t i c l e i n f o a b s t r a c t

Article history: The coal in Mozambique's Tete province has been known about for a long time, as the artist/explorer Thomas
Received 28 October 2010 Baines first captured onto canvass a coal outcrop on the banks of the Zambezi in the late 1850s. The first
Received in revised form 9 February 2011 geological works in the Tete province referred to the studies of coal occurrence, and were undertaken by
Accepted 11 February 2011
Richard Thornton (1859), a geologist on the Zambezi expedition under Dr David Livingstone and Guyot.
Available online 3 March 2011
However, most of the recent exploration has been conducted to ascertain the economic potential of the coal
Keywords:
resources within the region. The majority of these resources are located within remnants of the Ecca Group of
Coal resource estimation rocks, of the Karoo Supergroup, in the Zambezi graben of the Tete province of Mozambique. The coalfield
JORC (the Joint Ore Reserves Committee) consists of various sub-basins and is considered the largest undeveloped coal province in the world. Amongst
code others, it forms host to the well publicised Moatize metallurgical and thermal coal deposit, reported to contain
Tete province 2.4 Gt of coal and located within the Moatize sub-basin.
Mozambique coal In late 2004, a consortium of companies headed by Brazilian iron-ore miner, Vale, won the right to develop the
Coal resource reporting standards Moatize coal deposit. Other companies which tendered for this right were BHP Billiton, Rio Tinto and Anglo
American. Vale is partnered in this project with American Metals and Coal International (AMCI), a North
American coal producer, which owns 5% of the consortium. The consortium bid $122.8 M for the rights to
explore and develop the coal deposit.
The allocation of the tender award to Vale opened the way for smaller investors, such as the Zambezi Energy
Corporation (ZEC) who decided in late 2004 to develop a number of projects within licence blocks in the
Zambezi graben. Investment within the region has accelerated rapidly over the last couple of years and the
region has seen a number of developments. During this time the authors have helped to develop the potential
of new coal resources and have modified the traditional coal resource estimation techniques, such that they
can be used for reporting coal resources according to the terminology and guidelines given in the JORC (the
Joint Ore Reserves Committee) code (JORC, 2004).
The paper describes the complexities of the underlying regional and local resource geology and describes the
challenges of producing resource estimates to international standards, such as JORC.
© 2011 Published by Elsevier B.V.

1. Introduction
Coal bearing strata in Mozambique are mainly concentrated in an
east–west trending graben-controlled basin, the Zambezi Basin,
which is further divided into a number of sub-basins. The authors
have studied licences which are located in the most easterly of these
locally known as the Minjova sub-basin, adjacent to the Malawi
border. Three main stratigraphic units are recognised, from top to
bottom (youngest to oldest) being — Post-Karoo formations (Creta-
ceous to Quaternary), Karoo Supergroup (Carboniferous–Cretaceous)
and Pre-Karoo formations (Precambrian basement).
Most of coal-bearing strata are located within remnants of the Ecca
Group in the “Productive Series”, of the Karoo Supergroup, in the
Zambezi graben of the Tete province of Mozambique. Comparisons
⁎ Corresponding author.
E-mail addresses: bhatton@srk.co.uk (W. Hatton), afardell@srk.co.uk (A. Fardell).
have been made with the South African Karoo stratigraphy, although
the Mozambique coals were deposited in more tectonically active
basins and variations can be expected. There are a number of smaller
sub-basins within the rift with their own geological characteristics
and these are referred to later in this paper.
The Karoo Supergroup (Karoo) overlies the basement rocks with a
significant unconformity and comprises a series of detrital sedimen-
tary lithologies and coal bearing horizons, intruded at a late stage by
doleritic dykes and sills. Coal seams are present throughout the Karoo,
but the main productive series are found in the middle or
intermediate unit of the Ecca Group towards the base of the Karoo.
It seems likely that tectonic activity during the deposition of the coal
bearing strata has resulted in the complex sedimentological history
and this has typically resulted in seam structures with accumulations
of inter-banded coals and mudstone partings, collectively designated
as “coal zones”. These zones are recognisable over wide areas within
an individual coal basin.

0166-5162/$ – see front matter © 2011 Published by Elsevier B.V.

doi:10.1016/j.coal.2011.02.010
 W. Hatton, A. Fardell / International Journal of Coal Geology 89 (2012) 2–12
The majority of the work and licences are located close to 15°52′0.00
S 33°54′36.00 E in the Tete province of Mozambique, reported to be one
of the last un-developed coking coal basins in the world. Parts of the
Zambezi basin are currently being actively developed and it has been
reported that there are at least 40 companies in Mozambique that hold
coal licences, 95% of which are based in the Tete province (Fig. 1).
SRK UK Limited has been working for three companies in the Tete
province in Mozambique with the purpose of producing resources and
reserves that comply to internationally recognised JORC reporting
standards. The general geology of the province is shown in Fig. 2.
This paper describes the coal basin, its unique complexity (structural
and coal seam qualities) and how these impact on determining coal
resource and reserve estimates to JORC standards. The paper makes
some strong recommendations toward making a more stringent process
of exploration, assessment of resources and subsequent mine planning
processes for coal projects in complex structural and sedimentological
settings.
2. Geology of Mozambique and Tete province
2.1. General geology and the regional setting
Coal bearing strata in Mozambique are mainly concentrated in an
east west trending, graben controlled basin, the Zambezi Basin, which
is further divided into a number of sub basins. The licences which SRK
has assessed in detail are located in the most easterly of these, locally
known as the Minjova sub basin, adjacent to the Malawi border. Three
main stratigraphic units are recognised, from top to bottom (youngest to
oldest) these are: Post Karoo formations (Cretaceous to Quaternary);
Fig. 1. Location of licences in the Tete Basin.
3
Karoo Supergroup (Carboniferous–Cretaceous) and Pre Karoo forma-
tions (Precambrian basement).
The Karoo Supergroup (Karoo) overlies the basement rocks with a
significant unconformity and comprises a series of detrital sedimentary
lithologies and coal bearing horizons, intruded at a late stage by doleritic
dykes and sills. Coal seams are present throughout the Karoo but the
main Productive Series are found in the middle or intermediate unit of
the Ecca group towards the base of the Karoo. SRK considers that
tectonic activity during the deposition of the coal bearing strata has
resulted in the complex sedimentological history. This has resulted in
seam structures typical of the region, with accumulations of inter-
banded coals and mudstone partings are collectively designated as “coal
zones”. These zones are recognisable and continuous over wide areas at
the coal basin scale, whereas the individual coal seams or leaves are less
contiguous.
The first geological works in the Tete province area are referred to
the studies of the coal occurrence, and were executed by Richard
Thornton (1859, 1869) as geologist on the Zambezi expedition under
Dr. David Livingstone. The initial work mainly describes in a broad
manner the lithologies of the coal-bearing Karoo in Moatize.
At the beginning of the 20th Century, other geological works were
focused on the regional stratigraphy of the carbonaceous Karoo
sediments. But it is only more recently that regional mapping and
development work by companies such as Hunting Geology and
Geophysics Limited (1984) and Swede Coal (1982) have unlocked the
potential of the region by systematic surveying and mapping. Finally
the GTK Consortium (2006) re-mapped at scale 1:250,000 the broad
Karoo units in the Tete province. In Mozambique, coal is believed to
have an age of about 280 Ma (Permian) and it was formed during the
4 W. Hatton, A. Fardell / International Journal of Coal Geology 89 (2012) 2–12
Fig. 2. Geological map of the Zambezi Basin.
so-called Karoo rifting which affected the Eastern African region. All
the four main units of the Karoo Supergroup as observed in South
Africa can be located in parts of the Tete Coal Basins (from oldest to
youngest):
– Dwyka Stage, with tillite and fluvio-glacial deposits of Late
Carboniferous age;
– Ecca Stage, consisting of thick sandy-argillaceous deposits with
interstratified coal seams of the Early Permian age (299 to
251 Ma);
– Beaufort Stage, deposited between the Late Permian and the Early
Triassic, consisting of thick sandy sequences containing fossils of
fish and reptiles; and
– Stormberg Stage, the uppermost Karoo rocks, comprising shales
and sandstones at the base, and basalt and rhyolite lava flows on
the top, with dolerite intrusions.
The geology of the Tete province is dominated structurally by the
Zambezi rift which trends more or less W–E from the Zambia/Zimbabwe
border along Cahora Bassa and then swings SE towards Tete and
onwards to the coast of Mozambique (Fig. 2). The rift formed in
Proterozoic basement rock, developing into a zone of active extensional
tectonism with sedimentary deposition. The Proterozoic basement
comprises crystalline rocks such as gneiss, schists and meta-sediments.
The Tete complex consists of an intrusive suite of anorthositic–gabbroic
rocks, which has potential for discovery of platinum group elements
(PGE's).
Karoo rocks (Carboniferous–Jurassic) were deposited within
sedimentary basins on the tectonically active basement floor.
Following the Karoo sequences there was a sequence of marine
sedimentation in the Jurassic to Cretaceous in the Upper Mesozoic.
Karoo rocks are present throughout southern Africa, but most
widespread in the Republic of South Africa (RSA) where they host all
the economic coal resources and reserves. During this geological
phase the climate was changing from glacial to periglacial, with the
coal deposited in a cool climate, unlike the Laurasian coals of Europe,
which were deposited in a tropical climate. The combination of glacial
erosion followed by ice-sheet retreat most likely created a land
surface suitable for the accumulation of peat. Unlike the majority of
coal formation in RSA, where coal bearing Karoo Supergroup were
deposited in fairly stable tectonic basins, Mozambique coals were
deposited in tectonically active graben-like basins. In the Tete province
the sub-basins are part of 3 disconnected belts but probably represent
the deeper preserved portions of the original connected troughs. These
sub-basins occur over a distance of approximately 400 km. The sub-
basins are listed below and described by Vasconcelos (2009).
1) Chicoa-Mecucue
2) Sanangoe-Mefidezi
3) Moatize
4) Nkondezi-Muarazi-Minjova.
The basal unit of the Ecca Group is considered to correlate with the
Dwyka Group in RSA, however the tillites are not widespread and are
thought to be more fluvio-glacial in origin than pure glacial.
The extrusive volcanism that caps the Karoo sequence is also seen
in Mozambique with dolerite dykes intruded into the basement and
younger Karoo. The extensional faulting that produced the semi-
graben structures focused sedimentation and also continued through-
out sedimentation or perhaps just after Karoo cessation of sedimen-
tation with associated dolerite intrusions. These intrusives are known
to have an impact on the volatile content of the coals, which are
generally only low to moderate values. Intrusives can locally lower
these values and result in de-volatised coal (VM% (dry ash free basis
(dafb)) b 15%) within the Minjova sub-basin. Generally the volatile
level is around the medium to low level between 20 and 30% (dafb).
2.2. Local geology of the Minjova basin
For the purpose of this paper, the authors have kept the regional
geological description brief and will focus in this section on the key
aspects of the geological setting that has a major impact on the coal
resource estimation.
The detailed geology of the Ncondezi sub-basin has been sum-
marised extremely thoroughly by Meyer (2008). It consists of basement
granites and greenstones of Archaean age, which are un-conformably
 W. Hatton, A. Fardell / International Journal of Coal Geology 89 (2012) 2–12
overlain by Phanerozoic sedimentary strata of the Karoo Supergroup.
The Supergroup was deposited within a ‘marginal cratonic shelf
environment’, which subsequently became ‘tectonically active’.
Two inliers of the Karoo occur in the Ncondezi licence areas and
the third one is contiguous with a much larger outcrop that extends to
the north and northwest of the licences. The local Karoo succession
commences with a tillite unit, which is part of the Dwyka Group of
Permo-Carboniferous age. This is overlain by sandstones and shale of
the Ecca Group, which host the coal-bearing horizons. Grits and
sandstones of the Beaufort Group overlie the Ecca Group (Meyer,
2008).
Meyer (2008) notes that the contact between the Karoo strata
and the basement rocks is faulted in places, and that the Karoo
outcrop is traversed by faults trending northwest–southeast,
northeast–southwest and east–west. These faults will obviously
affect the distribution of the coal horizons, both at surface and at
depth, and according to Meyer the result is that the Karoo strata
occur within disconnected, fault-bounded blocks. Despite this, it
appears that the Karoo stratigraphy and coal horizons can be
broadly correlated throughout the area.
The account by Meyer (2008) includes a geological photo-
interpretation of the Ncondezi prospect. This work was synthesised and
improved upon in a British Geological Survey (BGS) study (Carney et al.,
2010) illustrated in Fig. 3. A note was made of the dyke interpretation.
These were almost certainly emplaced during a well-documented
Mesozoic extensional tectonic event that occurred throughout the eastern
part of southern African craton at about 170–200 Ma, towards the end of
Karoo deposition. These dykes, and methods for their detection, are
described from Zimbabwe and Mozambique by Testfaye (2004).
Meyer suggested that deposition of the Karoo succession was fol-
lowed by erosion and then by the deposition of Cretaceous sediments.
The present distribution of the Karoo strata in a series of isolated
Fig. 3. Lineament interpretation for across the Ncondezi licence areas (source British Geological Survey Study for Ncondezi Coal Services).
5
tectonic blocks was attributed to Tertiary rifting and faulting associated
with the development of the Zambezi branch of the east African rift
system.
The coals in the Minjova sub-basin occur within a so-called Productive
Series with a maximum of ten seams with six (6) principle/potential
economic target zones located within it. The coal zones are complex
(Fig. 4) but the Chipanga Seam is of prime interest towards the bottom of
the Productive Series and, whilst it is a complex inter-bedded horizon of
carbonaceous mudstone and coal, it can aggregate up to 30 m of
potentially extractable resource. The individual leaves are ideal for
opencast mining, with selective mining methods necessary to improve
Run of Mine (ROM) product qualities. The stratigraphy of the region is
given in Table 1.
In the Moatize sub-basin the geological correlation is better
understood and the coals have been identified as seams rather than
coal zones. Ten coal seams have been observed in Moatize area, of which
the six shown are the most important. According to Koch (1961), cited
by Real (1966) and by Thonnard (1969), the vertical distribution
and average thickness of the coal seams in the Moatize (Sandstone)
Formation in the Moatize area are schematized in Table 2 (from the top
to the base, not in scale).
The deposition of the coal bearing strata has resulted from the
complex sedimentological history. Seam structures typical of the region
with accumulations of inter-banded coals and mudstone partings
designated “coal zones” being recognised rather than individual coal
leaves or leaves which are contiguous, recognisable and traceable over
wide areas. As a consequence too, coal quality in the region is generally
high ash and low calorific value (CV) with relatively poor yields of good
quality products. However, coal beneficiation will generate consistent
good quality export coal products. Generally the coals in the Minjova-
Ncondezi sub-basin are classified as low-medium volatile bituminous
coals. Individual seam correlation is almost impossible over a scale of
6 W. Hatton, A. Fardell / International Journal of Coal Geology 89 (2012) 2–12

Fig. 4. A typical geology showing the density signature for intersections of the Chipanga Seam — source Midwest Granite (source Midwest Coal).

greater than one kilometre borehole spacing and even difficult at around
300 m spacing. The use of geophysical logging using a coal combination
suite (natural gamma, short and long spaced density and calliper) is
an absolute necessity to understand the intra-zone coal/dirt band
structure.
In 2007 GeoScientific and Exploration Services provided a reason-
able basic photo-geological map of the area based upon integrated
interpretation of a variety of geodata sets. Landsat satellite images, aero-
magnetics and the Shuttle Radar Topography Mission (SRTM) elevation
data provided the regional geological overview and the aerial photo-
graphs the more detailed information. Field checking, usually a crucial
part of an interpretation confirmed and added to the final synthetic
geological map.
Very little detailed structural analysis has been undertaken in the
study region, however the best attempt at understanding the
structural controls is contained in the Swede Coal Phase II report. It
 W. Hatton, A. Fardell / International Journal of Coal Geology 89 (2012) 2–12 7

Table 1 announced significant amounts of gold had been discovered, sending

Stratigraphy of the Ncondezi Area (Meyer, 2008).
Series
Matinde (~ Upper Karoo)
Productive(~ Lower Karoo)
Tillite (~ Dwyka)
Precambrian basement (Tete Suite)
Lithologies
Arkosic sandstones
Coal bearing carbonaceous mudstones
Grey siltstones
Greenish grey tillites; gritty red-brown
tillites, poorly sorted conglomerates,
sandstones and mudstones of
fluvio-glacial origin
Serpentinised gabbros, anorthosites,
feldspathic gneiss, schists and
calc-silicate metasediments
its stock price soaring. Originally a penny stock, its stock price reached
a peak at CAD $286.50 (in May 1996) on the Toronto Stock Exchange
(TSE), with a total capitalization of over CAD $6 G. Bre-X Minerals
collapsed in 1997 after the gold samples were found to be a fraud.
The approach adopted for reporting of Mineral Resources and Ore
Reserves must follow the guiding principles of competency, trans-
parency and materiality as adopted by all internationally recognised
reporting codes (“IRRC”) which have been aligned with the Combined
Reserves International Reporting Standards Committee (“CRIRSCO”)
template.
Internationally recognised codes are

JORC Code (2004);

shows five major fault orientations, the most significant being in the CIM Definition Standards (2005);
east, but generally ubiquitous across the prospect. Meyer states that Chile Certification Code (2004);
fault categories 1 and 2 have the most impact on the provisional coal
SAMREC Code (2007);
resources. Meyer estimated the general dip of the coal bearing units to
be between 5° and 30°. Vasconcelos (2000) noted that the extensional SME Guide (2007);
faulting of group 1 seems to have been followed by compressional PERC (2009).
movement, resulting in a series of anticlines and synclines parallel to
the border faults. The major fault groups are shown below. Reporting can also be aligned with specific requirements such as
Industry Guide 7 adopted by the Securities Exchange Commission of
the United States of America, with strict reference to IRRC compliance
Fault group Direction Comments
in respect of competency (Competent Persons/Qualified Persons) and
Group 1 320° Early phase faulting–longest faults–bounding
must be assured through the Competent Persons as recognised
graben faults
Group 2 305° Common in west, occasionally form the
overseas professional organisations (“ROPO”) with a defined Code of
Precambrian-Karoo contact Ethics (“CoE”).
Groups 3–5 (10°, 70° and 100°) Lesser intensity of faulting Reporting should be both balanced and accurate, which ensures that
statements appropriately reflect the development stage of the mineral
asset. Mineral Resource reporting combines the “potentially econom-
3. International resource and reserve reporting standards ically mineable” test as well as establishing a transparent foundation
for Ore Reserves and identification of upside potential. This paper deals
3.1. Background to the codes only with resource reporting, however it is worth noting that all Ore
Reserve declarations are supplemented by appropriate technical studies
Although the JORC code was first released in 1989, with the latest and completed on a multi-disciplinary basis to provide appropriate
revision published in 2004, the need for such a code was identified in assurances in respect of technical feasibility and economic viability.
1969 following the infamous Poseidon report given to the Adelaide In facilitating the ongoing process of expanding applicable Interna-
Stock Exchange. The boom and bust on the exchange was largely tionally Recognised Reporting Codes (IRRCs), much work is underway
caused by misleading statements regarding the nickel content. In on various initiatives for alignment of state approved reserve classifi-
1971 the JORC was officially formed. cation systems, such as those currently practised in the Commonwealth
More recently, the Bre-X Group of companies based in Canada, was of Independent States, with the Committee for Mineral Reserves
involved in a major gold mining scandal when it was reported to be International Reporting Standards template (CRIRSCO).
sitting on an enormous gold deposit at Busang, Indonesia (on Borneo). The Codes for Reporting of Mineral Resources and Mineral Reserves
Bre-X bought the Busang site in March 1993 and in October 1995 (the ‘Reporting Code’ or ‘the Code’) sets out minimum standards,
recommendations and guidelines for Public Reporting of Mineral
Table 2
Exploration Results, Mineral Resources and Mineral Reserves. Figs. 5
The coal stratigraphy in the Moatize basin (Cairncross 2001). and 6 show the broad principles of the JORC code, which all the IRRC
have been developed around.
Lithology Seam name Thickness
Fig. 5 sets the framework for classifying tonnage and grade estimates
Coal André 2m to reflect different levels of geological confidence and different degrees of
Sandstones with carbonaceous shales 27 m
technical and economic evaluation. Mineral Resources can be estimated
Coal Grande Falésia 12 m
Mudstones and sandstones 18 m mainly by a geologist on the basis of geo-scientific information with
Coal some input from other disciplines. Ore Reserves, which are a modified
Carbonaceous shales Intermédia 22 m sub-set of the Indicated and Measured Mineral Resources (shown within
Coal the dashed outline in Fig. 5), require consideration of the Modifying
Mudstones 30 m
Coal
Factors affecting extraction (environmental, social etc.), and should be
Carbonaceous shales Bananeiras 27 m estimated in most instances, estimated with input from a range of
Coal disciplines. Measured Mineral Resources may convert to either Proved
Sandstones and mudstones 14 m Ore Reserves or Probable Ore Reserves. The Competent Person may
Mudstones siltstones 34 m
convert Measured Mineral Resources to Probable Ore Reserves because of
Coal Chipanga 36 m
Mudstones 56 m uncertainties associated with some or all of the Modifying Factors
Coal Sousa Pinto 14 m which are taken into account in the conversion from Mineral Resources
Sandstones, siltstones and tillites 16 m to Ore Reserves. This relationship is shown by the broken arrow in
Unconformity Fig. 5. Although the trend of the broken arrow includes a vertical
Precambrian basement (gabbros, gneisses, etc.)
component, it does not, in this instance, imply a reduction in the level of
8 W. Hatton, A. Fardell / International Journal of Coal Geology 89 (2012) 2–12
Fig. 5. General relationships between Exploration Results, Mineral Resources and Ore Reserves (source JORC).
geological knowledge or confidence. In such a situation these modifying
factors should be fully explained.
3.1.1. The JORC code (specifics for coal resource estimation)
The Joint Ore Reserves Committee (JORC) code is a code of practise
which sets minimum standards for public reporting in Australia and
New Zealand of Exploration Results, Mineral Resources and Ore
Reserves. It provides a mandatory system for classification of tonnage/
grade estimates according to geological confidence and technical/
economic considerations in reports prepared for the purposes of
informing investors, potential investors and their advisors. The code
requires public reports to be based on work undertaken by a Competent
Person and the code describes the qualifications and type of experience
required to be a Competent Person. The code also provides extensive
guidelines on the criteria to be considered when preparing reports on
Exploration Results, Mineral Resources and Ore Reserves. However the
JORC code does not regulate the procedures used by Competent Persons
to estimate and classify Mineral Resources and Ore Reserves. Nor does it
regulate any company's internal classification or reporting systems and
JORC does not deal with breaches of the code by:
• Companies which is the responsibility of the Australian Stock
Exchange (ASX), or
Fig. 6. JORC principles based-source (Stoker 2009), JORC (source JORC).
• By individuals as these are dealt with under the Code of Ethics of The
Australasian Institute of Mining and Metallurgy, the Australian
Institute of Geoscientists or the Recognised Overseas Professional
Organisations.
Underlying fundamental principles of the JORC code are:
• Transparency — clear and unambiguous presentation of information
• Materiality — all the information reasonably required and expected,
and
• Competence — public reports based on work undertaken by Competent
Persons.
The code was first released in 1989, with the latest edition (2004)
included in the ASX Listing Rules on 17 December 2004. It sets
mandatory reporting standards for members of AusIMM and AIG and
is regarded as best practise by the Minerals Council of Australia and
Securities Institute of Australia. The code has been highly influential in
developing international reporting standards.
A ‘Mineral Resource’ is a concentration or occurrence of material
of intrinsic economic interest in or on the Earth's crust in such form,
quality and quantity that there are reasonable prospects for eventual
economic extraction. The location, quantity, grade, geological
characteristics and continuity of a Mineral Resource are known,
estimated or interpreted from specific geological evidence and
knowledge. Mineral Resources are sub-divided, in order of increasing
geological confidence, into Inferred, Indicated and Measured cate-
gories. Portions of a deposit that do not have reasonable prospects for
eventual economic extraction must not be included in a Mineral
Resource. If the judgement as to ‘eventual economic extraction’ relies
on untested practises or assumptions, this is a material matter which
must be disclosed in a public report. The term ‘Mineral Resource’ covers
mineralisation, including dumps and tailings, which has been identified
and estimated through exploration and sampling and within which Ore
Reserves may be defined by the consideration and application of the
Modifying Factors. The term ‘reasonable prospects for eventual economic
extraction’ implies a judgement (albeit preliminary) by the Competent
Person in respect of the technical and economic factors likely to influence
the prospect of economic extraction, including the approximate mining
parameters. In other words, a Mineral Resource is not an inventory of all
mineralisation drilled or sampled, regardless of cut-off grade, likely
mining dimensions location or continuity. It is a realistic inventory of
mineralisation which, under assumed and justifiable technical and
economic conditions, might, in whole or in part, become economically
extractable.
 W. Hatton, A. Fardell / International Journal of Coal Geology 89 (2012) 2–12
3.2. The JORC code for coal
It was not until 1989 did the JORC code become fully incorporated
in the ASX listing rules. In this initial code coal was specifically
referenced by means of an Appendix to the 1986 Australian Code for
Coal Resources and Reserves. These were refined and in 1999 the first
Guidelines for Reporting Australian Black Coal Resources and Reserves
was published in 2003.
Tightening of the reporting codes has resulted from the incidents to
which we refer above. In this paper reference will be made to the most
recent edition of JORC with specific reference to coal. In the 2004
guidelines, clause 37 specifically references the ‘Australian Guidelines for
Estimating and Reporting of Inventory Coal, Coal Resources and Coal
Reserves’ published in 2003. Clearly from this Stoker (2009) defines the
most important factors in assessing a coal resource (Table 3). The authors
consider Table 3 to be an excellent starting point in theassessment of a
coal resource and have added further critique from the experience gained
in Mozambique and other Gondwana and Laurasian coals that SRK has
been involved in assessing coal resource estimates.
4. Applying the JORC code in the Minjova sub-basin, Mozambique
In the Australian Guidelines for Estimating and Reporting Coal
Resources, Stoker (2009) draws specific attention to the following
points from the JORC Coal Guidelines.
Item 4.5 states the following …
‘The following are broad guidelines to assist the estimator when
determining the relevant confidence categories for estimates of
Inventory Coal, Coal Resources and Coal Reserves. In areas where
seams are faulted, intruded, split, lenticular, or subject to
significant variations in thickness or quality, more closely spaced
Points of Observation, which may be supported by Interpretive
Data, will be required’.
In assessing many coal deposits around the world under different
reporting guidelines one fact is clear in all assessments. There is no
single and simple formula to define the drill spacing required to
determine the risk categories and only experience can define that
knowledge. This is where the QP uses his wider experience and
knowledge from across various coal basins. In Mozambique this
knowledge is still being assembled, as detailed resource drilling and
exploration only started to happen seriously in 2005. This is unusual as
many coal basins across the world have been explored in the past to
good level of understanding over many years, with many ancient mines
adjacent or close to more recently drilled prospects. In Mozambique the
only existing mine is the Moatize colliery, working a limited exposure of
the basin. The regional and local geology was explained earlier in the
paper and the major key items affecting the way the resource estimate
are completed is discussed in the following sections.
4.1. Local coal geology and resource modelling — the real issues and
challenges
The Zambezi around the Tete province has given the coal exploration
and resource geologist a severe challenge because of the diversity of the
Karoo sub-basins in the Zambezi region. Until 2005 there was a limited
amount of ground-‘truth’ information to substantiate the preliminary
target estimates of mineral potential made in the 1980s, based upon the
excellent Swede Coal work and the civil war in Mozambique. The main
issues that SRK has found in assessing local site geology and
subsequently the mineral resources are
• Regional Geological Work — although the Mozambique Geological
Survey has conducted extensive re-mapping of the entire country
from 2000 to 2004 at 1:250,000 scale the detailed local mapping at
9
1:50,000 and 1:10,000 scale is often not available for the local
prospect blocks. This mapping was carried out by three different
mapping consortia and has produced maps with differing terminol-
ogies. Differing sub-basins have stratigraphic/correlation issues and
this makes it difficult to identify seams from sub-basin to sub-basin
when formation names do not equate within the Karoo Groups.
• The complexity of the sedimentation in the sub-basins makes
correlation very challenging at best. Initially in the earlier drilling
the lack of good quality core litho-logging and confirmation by
geophysical logging made resources assessment difficult and grade
and structural continuity could not be assumed. A number of skilled
geophysical logging operators are now based in Tete and able to
supply the logging required to high standards.
• There are rapid variations between mire sedimentation and non-
marine deltaic sedimentation and these give rise to the complex
‘bar-coded’ lithologies with coal, shaley coal, carbonaceous shales,
siltstones and rarely sandstones in the productive sequence. Careful
core logging and geophysical log comparisons are required to select
representative ply-by-ply lab sampling horizons.
• A detailed understanding of the relationship between the structural
elements of the basin, the basic attitude of the basement, the
deposits and the geometry of the dolerite intrusives is needed at an
early stage of the resource assessment. Exploration and scout
drilling is all too quickly turned into resource drilling, well before
these issues are even partly understood.
• The level of sampling for JORC resources is still under debate for the
Tete province. Drill spacing within the Moatize basin may not apply
to the Minjova sub-basin, even though they are only within 50 km of
one another.
• More steeply dipping parts of a deposit (N10 degree dip) must be
recorded and adjusted for in True Vertical Thickness estimates
(TVT). Verticality surveys are not common in coal exploration/
resource drilling, but should become part of the mandatory data
requirement.
• Coal seam qualities in the eastern part of the Tete province are
generally high ash, low-medium volatile coals that require
considerable beneficiation to provide high specification thermal
export coal. Positive point of observation can only be recorded if
the effective thickness and analysis samples are representative of
the potential economic product being assessed. Data analysis must
incorporate clear guidelines on what constitutes effective thick-
ness/potential product zone, with any cut-off criteria clearly
identified and applied correctly to the data set and the censorship
clearly recorded. Such data must then be used to estimate the
relative density (RD) of the coal, which must be representative of
the effective thickness modelled for each point of observation. In
the east of the Tete province SRK has observed that relative
densities of the coal zones are high around the 1.7 to 1.8. The RD of
each point of observation for each coal zone should be recorded
against the % ash for the zone and if possible a linear regression
modelled, thus giving a secondary check on the RD value used in
the resource estimates. Coal zone/seam delineation must be
completed using lithology, geophysical log picks and laboratory
analysis data. This was especially important to combine all three
types of data and was completed in both mine planning system
and by analogue means. The use of geophysical logs is a must in
this region to complete the correct sampling strategy across the
coal zones.
• Resource estimates for coal must follow a clear workflow from
detailed data verification and validation, resulting in transparent
seam/zone models that have quality parameters that have been
modelled into a series of grids or a block model encompassing such
data. The recording of the modelling parameters must be completed,
with a clear inventory of the modelling parameters used, such as
block/grid size, estimation methods used, and any applied cut-off
factors, such as horizons or domains with lower volatiles or thicker

Table 3
Extract from the JORC code for coal (AusIMM, 2009).
What is a Coal Resource? (Stoker's main observations)
A Coal Resource is an estimate of tonnage and quality for a body, based on sampling of that body
The estimate represents a realistic inventory that, under assumed and justifiable technical and
economic conditions, might, in whole or in part, become economically extractable
Portions of a deposit that do not have reasonable prospects for eventual economic extraction
are NOT Coal Resources (see Australia Coal Guidelines Inventory Coal)
Sub-divided, in order of increasing geological confidence into:
Inferred Coal Resources (low level of confidence)
Indicated Coal Resources (reasonable level of confidence)
Measured Coal Resources (high level of confidence)
The distances between points of observations can aid in defining these categories, but beware
spacing alone is not to be used in classifying the coal resource. The drill holes may be closely spaced
but lack of analytical data of key parameters (for example swelling number and maturation index
in coking coal assessments) would downgrade the confidence code on the point of observation
Seam continuity is a topic for a paper on its own but must be judged by the QP with an understanding
of the complexity of the coal basin from both structural and also ‘grade’ or seam quality terms.
The categorisation using spacing alone between points of observations is fraught with danger.
10
Authors' generic observations (specific complexities observed in Mozambique in BOLD)
Provisional tonnages are often based upon density values that have poor founding. Careful auditing is required to ascertain
representative RAW (non-washed) coal densities. Coal seam data (points of observations) must be turned into quality
information. The data should have been collected using internationally recognised drilling and sampling guidelines
W. Hatton, A. Fardell / International Journal of Coal Geology 89 (2012) 2–12
(ASTM (MNL 11), 1992). Quality of the core with linear core recoveries of N 90% are expected. Core photography must be
completed under consistent lighting and aspect ratio. If geophysical logging is undertaken by competent contractors or site
staff then recoveries can be judged against locating the core loss by use of logs. Detailed comparisons of lithology logs,
geophysical traces, core photographs and the resulting analysis sampling must be undertaken with special reference to
lower core recovery zones.
Technical and economic conditions are fast moving and re-assessments of old reports and estimates must be undertaken
at regular intervals.
Careful spatial domaining of coal deposits are required and tonnage assessments and categorisations made upon such
domains. Geological, mining and infrastructure constraints assessed, even at resource estimation phase. At least stationarity
checks should be made using classical statistics and preferably using variogram analysis.
Worldwide coal geologist's need to be more rigorous in defining “cut-off” criteria. This is often done by excluding waste based
upon a parting thickness between coal plies. Depending upon the product specification required cut-off can also be dependent
on a set of coal analysis/quality criteria, such as pertaining to coking coal or specialised thermal grade coals for cement etc.
Mozambique coals are expected to be either a good source of coking coal or export thermal standard. Product types need to
be assessed at resource estimation stage to correctly define reasonable prospects for eventual economic extraction. Correctly
composited values of relative density of the product must be assessed and truly representative and sample across the effective
thickness of the coal seam/zone.
If the prospect requires beneficiation/washing then wash test analysis must be performed over the most representative 3D
domain of the coal seam/zone. The effective thickness should be tested for washability and the tests representative of that
volume of material that will become Run Of Mine output.
Careful assessment by the Competent Person (CP) of confidence is the most critical part of this process. Software categorisation
by means of block models can help, but often experience of coal estimation is paramount in this process. Reliance on just distance
of borehole (points of observations) and statistical indices are not the only factor for assessing coal economic viability The
quality of the data underlying the point of observation are also very important and must be representative of the volume
estimated. Complex deposits with high structural disturbance or rapid sedimentary variations require closer spacing than
the codes suggest in the guidelines and codes. A variety of laboratory tests (proximate analysis, washery testing on a truly
representative sample of coal and the representative or prospective mining thickness). Representative washery tests are a
must in Mozambique of the economic zones. All these factors are required and assessed as a series of spatial or domain
overlays when classifying the coal resources.
 W. Hatton, A. Fardell / International Journal of Coal Geology 89 (2012) 2–12
waste partings that dilute the product beyond future economic or
recoverable limits. A generic work-flow for coal resource modelling
is given in Fig. 7. A clear understanding of the eventual product is
needed to make such assumptions and even though detailed
scoping studies will not have been undertaken.
4.2. Developing a revised workflow for JORC compliant coal resource
estimates in complex coalfields
The authors, whilst commissioned to Ncondezi Services and
Midwest Granite, perceived the need to produce a workflow centred
around processing geological, analysis, coal processing and mine
economic analysis that was robust and ensured that the necessary
levels of QA–QC and due diligence are being adopted in the drilling,
sampling and estimation of resources (Fig. 7).
The key issue in the Zambeze basin in Mozambique is to clearly
define grade and structural continuity across the coal zones, within the
Minjova sub-basin. The resource estimate must completely encompass
the tasks detailed in Fig. 7, and the steps and decisions in the resource
estimation process must be documented and defendable.
Sensitivity must be run where possible on the parameters used in
the estimation. This includes the search ellipse radius, estimation
method, number of samples and sectors used for an estimate and
kriging outputs, if applicable. It also may be used to define confidence
in the estimate, for example, an estimate with a small search radius
and many samples has a high confidence whereas an estimate with a
large search radius and a small number of samples has a much lower
confidence. It is vital that these parameters are detailed and defended
in the reporting of a resource.
Fig. 7. Revised workflow for a JORC compliant resource estimate.
11
Sensitivity of the geological and resource model must also be
tested by iteratively reviewing the output tonnages and re-running
the optimisation using a range of likely coal zone effective thickness
and quality parameters such as density, ash content, and CV and yield
of washed product.
5. Summary and conclusions
Coal resource estimation in Mozambique has been completed by
SRK to JORC standards on several licence blocks within the Minjova
sub-basin. The immaturity in geological knowledge at the regional/
local site scale in terms of structure and seam continuity can be
overcome by adopting a rigorous approach to the coal resource
estimation process, which is not fully appreciated or applied across
coal deposits in less complex coal basins. The rapid switch between
coal accumulations in a mire environment to non-marine deltaic
sedimentation is a dominant geologic control. The sedimentation in
the Karoo (Zambeze) basin was controlled at the macro-scale by
extensional tectonism and associated volcanism, resulting in the ‘bar-
coded’ accumulation of high ash bituminous coal. The nature of the
deposits demands a rigorous application of the JORC principles to
ascertain coal resource estimates.
Database integrity and prior data validation are of paramount
importance and are necessary to ensure efficient testing of the
geological model that underpins the JORC resource estimation proce-
dure. A naive application of the JORC principles will not trap poorly
collected and interpreted data. The authors support a robust iterative
workflow, whereby both the un-interpreted and then modelled data are
checked against one another and any necessary re-coding made. Serious
omissions are recorded in a work-flow that is understood and managed
12 W. Hatton, A. Fardell / International Journal of Coal Geology 89 (2012) 2–12
by the Competent Person assigned to the resource estimation
procedure. Grade continuity is the biggest challenge in the Minjova
sub-basin, as geological knowledge is still fairly immature but growing
steadily. The impact of extensional tectonics and syn/early post
diagenetic intrusive phases (170–200 Ma) provide a severe challenge
to the JORC resource estimation workflow and subsequent classification
of the resource into measured, indicated and inferred sub-classes.
Acknowledgements
The authors would like to thank the management of SRK
Consulting (UK) Ltd for the time allowed to prepare and submit this
paper along with constructive feedback. The initial data, support and
constructive comments were supplied by Ncondezi Coal Ltd and
Midwest Granite, namely Mr Graham Mascall, Mr Nigel Walls, Mr
Hanno Pengilly, Mr Chris Jones and Mr James Chatupa. From Ncondezi
Coal.: Support was given by Dr G Lakshminarayana, Mr K Ramachan-
dra and Mr Raghav Reddy from Midwest Granite.
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