GGM to abandon oil-based generated electricity as it joins into National Grid

Getrude Mollel

JF-Expert Member
Apr 26, 2022
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MINISTER for Minerals Dr Dotto Biteko has expressed his satisfaction with the speed of the construction of the power substation being built by the Geita Gold Mining Company (GGML).

The construction will enable the mining company to abandon oil-based electricity production and move to the cheaper National Grid electricity.

The GGML mine is building a plant that can transmit electricity with 13 kilovolts capacity to its plants, which, until it is complete, is expected to cost 50bn/-until it is complete.

In addition, the Tanzania Electricity Company (TANESCO) is also building the six-kilometre power transmission line to the mining site.

Minister Biteko said this during his recent visit to the GGML mine in the Geita region, where he expressed his hopes that by March 2023, GGML will start using electricity from the national grid.

“GGML wants to shift from the use of oil-generated electricity to TANESCO generated power, the substation being built will cost 20 million US dollars (46.6bn/-), and they have made a good step, I believe that until March next year, we will turn on Tanesco’s electricity to run our mine,” said Dr Biteko.

Earlier on, Vice-President of GGML’s parent company, AngloGold Ashanti, Simon Shayo, who handles sustainable projects in Ghana and Tanzania, said that the completion of the project will reduce the mining operation costs and electricity production by more than 50 per cent.

He said the GGML mine has all along been using more than 40 MW of electricity produced by diesel-powered generators since 2018.

“Now we are in the process of building a substation TANESCO will build a six-kilometre line to reach here.
“So, by March 2023, we will be using TANESCO electricity, and we will have reduced our electricity cost by 50 per cent, from one unit for 19 cents to one unit for nine cents,” he said.

In addition, it was stated that the completion of the project to deliver electricity to the GGML Company is expected to enable TANESCO to earn 5bn/- per month from electricity sales.
 

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