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Progress in Tanzania

Published by , Digital Assistant Editor
World Coal,

Intra Energy Corp. Ltd has announced that Tancoal Energy Ltd has produced a monthly record tonnage for May 2017 of 51 013 t, with sales of 42 720 t. This is compared with May 2016 production of 19 014 t and sales of 19 548 t.

Sales were lower than expected which reflected the impact of heavy rains causing a slowdown in cement usage. This enabled stockpiles at the coal supply area at Kitai to be built with the installation of an additional weighbridge to increase the turnover of loaded trucks.

Tancoal Energy Ltd received a formal letter from the Ministry of Energy and Minerals in May, which stated ".....The Ministry appreciates your desire towards the development of coal to Power Projects in Tanzania, especially through your mining license No. ML-439/2011. In view of the above, your company is advised to start the development of the said project by utilising the allocated coal reserves as per the PSMP" (Power System Master Plan)”.

The company is in discussions with its power station partner, Sinohydro, to move forward.

During the Month in review discussions have commenced with Chinese controlled Sinoma and Hengya Cement (T) Ltd who have announced the development of a US$1 billion cement and power complex at Tanga which will export approximately 70% of its production. It is expected that this will generate a coal requirement of up to 1 200 000 tpy from 2019. During the month, initial survey work was undertaken to determine best potential routes to the coast for barge delivery into Tanga as well as to be able to offer supply into a new coal-fired coastal power station to be built in Kenya.

Second Phase production and supply expansion commenced with the intention to raise production to over 1 000 000 t annually to cater for rising demand generated by Tanzania's industrial development and regional exports. New contractor earth-moving equipment will be delivered along with a crushing plant, which will double current capacity.

IEC Chairman, Graeme Robertson, commented: "May represented a turning point in our operations and we are moving forward with a very solid Tancoal Team, good partners and new market potential. We are now addressing the pricing of our coal to increase to South African levels and generating long term contractual arrangements to support Tanzanian industrialisation."

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