Australian firm to mine coal in Tanzania

[Nyambala]

Australian firm gets coal mining permit in Tanzania

By: Reuters
22nd August 2011

DAR ES SALAAM - Australia's Intra Energy Corporation (IEC) said its local unit in Tanzania had received a licence for a coal mining project that would initially produce 10 000 t/m and that it planned to build a coal-fired power plant in the east African country.
IEC said on Monday its subsidiary, Tancoal Energy, would begin mining coal at the Mbalawala mine in south-western Tanzania this month. The Mbalawala project will be Tanzania's first privately funded coal mine.
"The mining licence has been issued to Tancoal Energy Ltd (Tancoal) over the initial mining area of the Mbalawala mine at the Ngaka coalfields in southwest Tanzania," IEC's executive chairman, Graeme Robertson, said in a statement to the Australian Securities Exchange.
"Coal mining will commence during August, when land compensation has been finalised. Mining will commence at the rate of 10 000 t/m to meet sales contracts to local industry."
East Africa's second-largest economy intends to invest in thermal plants powered by natural gas, oil, jet fuel and coal to wean itself off weather-dependent hydro power, which accounts for 55% of its energy sources.
Tanzania plans to spend $742-million by the end of next year for emergency power projects aimed at ending chronic energy shortages.
IEC said on its website it had plans to build a 450 megawatt coal-fired power plant and export thermal coal to other countries.
IEC, which has a 70% t stake in Tancoal, said it would increase coal output as it concludes additional sales contracts.
The Tanzanian government owns the remaining stake in Tancoal through the state-run National Development Corporation (NDC).
Tancoal owns several exploration concessions in Tanzania's Ngaka basin, which it says has potential reserves of up to 1-billion tons of coal.
The Tanzanian government last year renationalised the Kiwira coal mine in Mbeya region after an irregular privatisation process in 2005 and is now seeking a $400 million loan from China to develop a 200 megawatt coal-fired power plant.

My Take:

At least hapa serikali yangu imenifurahisha, lakini cha msingi on top of hiyo stake ya 30% tuhakikishe wafanyakazi wanalipwa vizuri (Zaidi ya kwenye gold mines ofcourse), business opportunities kama supplies za mgodi zifanywe na watanzania na pia Nyumba/ Camps zijengwe na kuendeshwa na watanzania. Sasa tusijesikia baada ya miaka miwili mitatu mara hiyo stake haileweki imeenda wapi mara Rostam ooh!!!!!!! Lowassa.

Halafu kwenye hizo concessions nyingine za exploration wauziwe watanzania ikiwezekana kuwe na migodi kadhaa ya watanzania (Mara nyingi serikali huwa haziko makini kuendesha biashara na hasa hiyo ya kwetu thijui??)

 

[Nyambala]

Australian firm to invest $116m in Tanzania coal

DAR ES SALAAM - Australia's Intra Energy Corporation (IEC) plans to invest $236-million in Tanzania's first privately funded coal mine and a coal-fired power plant to reduce nation's reliance on hydro power, its chairman told Reuters on Wednesday.

IEC executive chairperson Graeme Robertson said mining was expected to start in the coming week, with the first consignment of coal expected in September.

The mine was projected to expand its output to 500 000 t/y by 2013, with a long-term maximum output capacity of five-million tons a year, he said.

IEC's local unit in east Africa's second largest economy, Tancoal Energy, had already spent $23-million on exploration and initial development costs of the Mbalawala mine, in the south-west of Tanzania, Robertson said.
"This investment will increase by some $93-million (in order) to increase the mining to a rate of up to five-million tons a year," Robertson said in an interview.

"We are currently meeting compensation payments this week and will commence proper mining next week . The first shipments of coal will commence in September."

He said the company would invest an additional $120-million in a coal-fired power plant near the mine.
"We have identified several possible sites for power stations near Mbalawala for 120 MW. We are trying to fast-track this station with two 60MW units to be installed by end 2013," said Robertson.

"The cost is approximately $1-million for each mega-watt or $120-million for the initial 120 MW at Mbalawala."
Robertson said the company was also considering construction of a 400-MW power plant in the southern Tanzanian town of Mbeya and another 400-MW power station in the commercial capital, Dar es Salaam, between 2013/4 and 2017/8.

CHRONIC POWER SHORTAGES
The east African nation wants to spend $742-million by 2012, for emergency power projects aimed at ending chronic energy shortages, and intends to switch to thermal power sources such as coal.

This would wean the country off weather-dependent hydro power, which accounts for 55 percent of its electricity generation.
IEC owns 70 percent of the shares in Tancoal Energy, while the Tanzanian government holds the remaining stake through the state-run National Development Corporation (NDC).

The first stage of the mine development targets initial production of 10 000 t/m, rising to 30 000 t/m in 2012, and stabilising at 500 000 t/y, the year after.

"The initial markets are (local) industrial markets such as Mbeya Cement and Tanga cement," said Robertson
"Our combustion engineers have found strong interest from factories wanting to generate their own electricity with coal-fired generation because of the unreliability or lack of availability of electricity," he said.

The Mbalawala mine is projected to substitute coal imports from South Africa and offset high costs associated with the shilling's depreciation, which has lost 9.8 percent this year.

Tanzania imports 250 000 t/y from South Africa.
The Tanzanian mine has a mineable reserve of 40-million tons of coal.
"Our exports commence this year to Malawi and we believe it is our role to support neighbouring countries with exports to Mombasa, Kenya and possibly Mauritius," said Robertson.

My Take:

Huku Mbeya si ndiyo kuna ile project ya Kiwira? Je kuna any coorditation kati ya hizi projects mbili?

 

[SHERRIF ARPAIO]

Bora hawa waaustralia kuliko wachina. At least local Tanzanians in the area watapata kazi kuliko hao wachina ambao kuanzia CEO hadi mbeba zege anatoka China

 

[zomba]

Hakuna hata magwanda mmoja anaesifia hii, kazi yao kuponda tu. Mko wapi magwanda?

 

[Jasusi]

Hakuna hata magwanda mmoja anaesifia hii, kazi yao kuponda tu. Mko wapi magwanda?

Naona wamehamia kule kwa akina Faiza Foxy na Malaria Sugu.

 

[Steve Dii]

"The cost is approximately $1-million for each mega-watt or $120-million for the initial 120 MW at Mbalawala."
Robertson said the company was also considering construction of a 400-MW power plant in the southern Tanzanian town of Mbeya and another 400-MW power station in the commercial capital, Dar es Salaam, between 2013/4 and 2017/8.

Hizi projects zina sprout kila pahala, jambo ambalo ni positive. Lakini naona kama kuna mkanganyiko fulani hivi baada ya kusikia ya Wachina na mradi wa Mchuchuma na Liganga. Maana naona nao watafua umeme wa megawatt 600 na katika hizo 300 kubakia nazo wao. Mbona kunaonekana kuwepo megawatts nyinginyingi zikizagaa zagaa ovyo bila mpangilio. Kama hapo juu, kweli mkoa wa mbeya unahitaji 400MW katika miaka 5 ijayo?!

Wakuu, ninachotaka kusema hapa ni hivi; inavyoonekana hapa ni kama kwamba tumeamua kubinafsisha na kuuza migodi yetu mikubwa tena yenye deposits kubwa sana kwa ajili ya kutatua matatizo ya muda mfupi ya umeme tuliyokumbana nayo. Tunatumia ubinafsishaji huu kama short term solution ya tatizo la umeme badala ya kulitatua tatizo hili kimpangilio unaolenga swala la umeme pekee na si uuzaji wa migodi. It's true what they say that, desperate situations call for desperate measures; but aren't we giving away too much in trying to sort ourselves out from these power-shortages?! Tusije kujikuta tuna surplus ya megawatt 800 na ushee ambazo kutokana na infrastructure yetu ilivyo tukashindwa hata kuuzia nchi jirani, huku migodi yetu ikiwa imeshachukuliwa na wageni kwa asilimia kubwa.