In November 2007, NDC and Atomic subsidiary Pacific Corporation East Africa entered into a memorandum of understanding to develop selected coal projects in southern Tanzania.

The JV, signed by both parties on April 3, covers coal mining and exploration within the Mhukuru and South Ngaka coal fields and subsequent investigations into power generation and distribution.

Under the JV, a new company will be formed with PCEA and NDC as shareholders.

PCEA will pay a $US50,000 commitment fee to NDC and fund the completion of a feasibility study, with a financial commitment of no less than $500,000, for a 50% shareholding in the new company.

It will then acquire a further 20% by funding a bankable feasibility study on the coal project.

NDC will endeavour to ensure mining rights are granted in terms favourable to the JV and assist in any subsequent mining, water or land rights, coal export and terminal construction licences, local community negotiations and government facilitation and representation.