Tanzania bans coal imports

Tanzanian coal companies have welcomed a government directive banning imports of coal into the country and requiring coal consumers to enter into supply contracts with local producers.

As a result, ASX-listed Intra Energy – which owns the Ngaka coal mine through its Tancoal Energy subsidiary – said its coal sales would double in the quarter to December from around 20 000 tpm to 40 000 tpm.

“Measures have already been undertaken to double production at the Ngaka mine, including the introduction of a new contractor fleet of equipment and increasing the availability of Tancoal’s mining equipment,” the company said.

Edenville Energy, which is developing a coal-to-power project in Tanzania, also welcomed the announcement, saying it “created a significant near-term opportunity for coal sales throughout Tanzania and the company is reviewing its options to contribute to this production accordingly.”

Edenville owns a mining licence over the Mkomolo deposit and can also source coal from mining licences in the nearby Namwele deposit, where mining has previously occurred.

The company already holds a valid environmental impact assessment certificate and is thus “well placed to rapidly instigate coal production subject to the project’s economic viability.”

Edited by Jonathan Rowland.

Read the article online at: https://www.worldcoal.com/coal/16082016/tanzania-bans-coal-imports-2016-2243/