Tancoal seeking govt approval to invest in coal fired power station

13Apr 2020
The Guardian Reporter
The Guardian
Tancoal seeking govt approval to invest in coal fired power station

COAL mining company at Ngaka in Tunduru district is seeking government approval to invest in coal fired power station to feed southern regions of the country.

Tancaol mine at Ngaka in Tunduru district.


In its half year results for December 2019, Intra Energy Corporation which owns Tancoal jointly with National Development Corporation said, “IEC continues to investigate partnership arrangements for the development of a mine-mouth power station, however, the government has not given an approval for a coal-fired power station for southern Tanzania at this stage.”

The company which increased production capacity at the mine during the period to 80,000 tonnes per month, said the amount is enough to meet customer demand when it increases. “Sales began strongly at the start of the half-year but the imposition of the royalty on transport, the startup of some smaller competitor mines, lower sales to some major customers undergoing refurbishment of their plants and the rainy season reduced sales during the period,” the report stated.

The coal mining company paid over 27bn/- to Treasury and Ministry of Energy and backlog taxes and royalty dating back to 2011 when it started production at Ngaka.

Meanwhile the company also assisted Mbalawala Women’s Organisation to grow their businesses as part of its corporate social responsibility. “MWO has worked very hard and with the increased production and sales at the mine their catering and accommodation service business has achieved financial independence, the company will continue to support them with technical and other ongoing support that they need,” the report stated.

The MWO has received a tested product certificate from Tanzania Bureau of Standards which is a licence for them to manufacture coal briquettes. “These briquettes from coal fines mixed with clay, have the potential to reduce the use of charcoal in cooking fires and hence reduce the environmental devastation caused by the charcoal industry,” the Australian based company added in its report.

Tancoal also donated funds to local village organisations to support their activities within the community and has donated funds for new classrooms and a project to construct a well capable of delivering 7,000 litres per hour of potable water at the Ntunduwaro village close to the mine site.

“Tancoal has submitted its corporate social responsibility plan for 2020 to the government as required,” the IEC report noted.

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