Power Production

Mchuchuma Coal to electricity Project

The project is located at Mchuchuma area, Ludewa District, Njombe Region about 950 km from Dar es Salaam. It is being implemented by Tanzania China International Mineral Resources Limited (TCIMRL), a Joint Venture Company (JVC) between the Government through NDC (20% non-cash) and Sichuan Hongda Group from China (80%). According to the signed Joint Venture Agreement (JVA), the project involves establishment of Coal Mine with production capacity of 3 million tons per annum (t/a), Power Station with a capacity of 600MW (4 x 150MW) including 220KV Power Transmission Line between Mchuchuma and Liganga. The 250 MW out of the 600 MW will be utilised by Liganga Iron Ore project and the balance 350 MW will be connected to the National Grid at Makambako through a proposed 400 kV Power Transmission line. Drilling exploration was completed in 2012/13 has established coal reserve of 428 million tons. Feasibility, Environmental and Social Impact Assessment (ESIA) studies have been completed.

ESIA Certificates, License for mining Coal and Water Rights for use of Katewaka and Mchuchuma Rivers have been obtained. Strategic Investor Status Certificate and subsequently Performance Contract and its Addendum for Incentive Package were signed between the Government through Tanzania Investment Centre (TIC) and TCIMRL. Currently, the Government is reviewing the project including the issue of incentives. Total investment for coal mine, power station and 220 kV power transmission line is about USD 710,594,000.

Ngaka coal to Electrity Project

The project is located at Ngaka area, Mbinga District, Ruvuma Region about 1,100 km from Dar es Salaam. The project is being implemented by Tancoal Energy Limited (TANCOAL), a Joint Venture Company between NDC (30% non-cash) on behalf of the Government and Intra Energy Corporation of Australia (70%). Ngaka project has coal reserve of 423 million tons. The project was conceived to establish a Coal Mine with a capacity of up to 1.5 million tons per annum and Power Station with a capacity of up to 400 MW. 10 Tancoal established Coal Mine at South Ngaka (Mbalawala) and commenced coal mining operations in August 2011 with a capacity of below 30,000 per month. The main customers of coal are local cement factories located in Tanga, Mbeya, Dar es Salaam and Mtwara and some is exported to neighboring countries of Malawi, Kenya, Uganda, Zambia and Rwanda.

Following Government ban on coal importation in 2016 Tancoal acquired extra mining equipment to increase production and now Tancoal is capable to produce up to 100,000 tons per month depending on demand. The coal mine faces a supply challenge due to usage of road transport, which is expensive for long distance haulage of bulky commodity like coal. In September 2018, TANESCO floated a tender for – pre qualification of coal fired power generation project with total capacity of 600 MW.

Currently the selection process is in RFP stage. However, in parallel with the above, NDC has initiated discussions with TANESCO on how best to utilize our coal resources for power generation. Through this arrangement Tancoal Energy Ltd will remain as a fuel supplier to the Company which will implement the coal Fired Power Plant either on Build-Own and Transfer(BOT) or Engineering, Procurement, Construction plus Finance ( EPC + Finance) arrangements.

Katewaka Coal Mining Project

The Katewaka Coal Mining Project location is proposed to be close to the Muhumbi Village, Katewaka Ward in Ludewa District, Njombe Region, some 600km inland in the Southern Western part of Tanzania near Lake Nyasa and close to its border with Malawi in the West and Mozambique in the South. The project lies between Latitudes 10° 15’ 58” S and 10° 18’ 38” S and Longitudes 34° 44’ 59” E and 34° 51’ 13” E, covering a total area of about 25 S.KM at an altitude of about 1030m above sea level.

Currently, a total of 100 million tons good quality coal reserve as per JORC Standard has been confirmed. The project involves opening up a surface open cast coalmine of 1.5 mil tons per annum for supply to local industries (cement industries) and to the neighboring countries. Upgrading of the road from the Coalmine to Mawengi Stockpile will be required to enable startup of the mine, planned in April 2020. The estimated investment for 1.0 mil t/a coal mine is USD 48 million.

Singida Wind Power Project

The project is located at Unyianga Village, 14km West of Singida Municipality along the Singida – Mwankoko Road, some 700 km from Dare s Salaam, Central Tanzania. The objective of the project is to establish a solar farm for generation of 100 MW for supplying to the National Grid. Feasibility study and ESIA study have been completed and ESIA Certificate obtained. About 569 ha of land has been identified for development of this project and 150 Ha has been surveyed and valuated for generation of 100 MW. Compensation bill is about TZS 500 million.

Valuation report is in the process of approval by Chief Government valuer. Indicative project cost has been estimated at USD 126 Million. Tanesco has floated fender for large solar power generation and several companies have been qualified for the RFP process. RFP ducoment has been issued to 18 companies for preparation of detailed proposals to gerate a total of 150 MW. Deadline for submission of proposals has been extended to 08/01/2020.