Tanzania to start $3-bn mining, power projects

26 September 2014

Tanzania will start construction next year of a $3-billion coal and iron-ore mine and a 600-MW coal-fired power plant, a State development agency spokesperson said on Thursday.

The projects, on a site some 900 km southwest of Dar es Salaam, planned under a joint venture deal with a Chinese company.

They are part of plans to increase the east African country’s coal-fired power generation capacity and exports, exploiting its five-billion-tonne coal reserves.

East Africa‘s second-biggest economy suffers from frequent blackouts due to supply shortfalls, forcing most businesses and wealthy people to have stand-by generators, and is trying to ease the constraints cited as a barrier to economic growth.

China‘s Sichuan Hongda Co Ltd signed a $3-billion deal with Tanzania in 2011 to mine coal and iron-ore and build the coal-fired power plant, a deal that marked China‘s growing economic presence in the country.

By: Reuters

Photo: Duane Daws

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