48 FOREIGN INVESTORS LINE UP FOR A PIECE OF MCHUCHUMA COAL MNING PROJECT IN TANZANIA.

Business Report By Leo Odera Omolo In KIisumu City.

REPORTS emerging from the Tanzanian capital, Dar Es Salaam say that 48 firms drawn from as far afield as Brazil, India, China, Canada, Singapore and Australia are lining up to take Tanzania’s coal mining project.

It quoted the Director General of the National Development corporation Ltd {NDC}, Mr. Alley Mwakibolwa as saying that the selected firm is to be known by the end of the year –and is expected to construct 400 Megawatts Power plant, which will help to solve persistent power shortage in that country..

Some of the firms that have shown interest so far include Nara Bharal of Singapore, BHP Pailliton of Brazil, Australian based Western Metala Corp , India’s Tata. Steel Co and China’s CAMC Engineering.

The development of the Mchuchuma Coal is expected to cost a colossal sums of money to the tune of USD 660 million, with the power plant expected to be completed within three to four years after the construction work begins.

According to NDC, 200 km of high voltage power line would also be constructed linking Mchuchuma to the national grid.

A joint venture between Pacific Corporation East Africa {Australia}and the NDC has already prepared a bankable feasibility study for the coal mine power and power generating facilities.

Ancoal Energy ltd managing director, Gideon Nasari said his firm was in the process of obtaining all the necessary approvals and licenses from the relevant government agencies in conjunction with the study.

He further stated that Tancoal estimated its investment to exceed USD 1.2 billion developing coal feedback, constructing a 400 MW coal-fired power station, and high voltage transmission lines.

“For the past 50 years, Tanzania tried to explore coal in collaboration with multinational mining companies, but with no significant results .

The Mchuchuma project will help the mining sector in the country since most gold mine sector relies on fuel-fired plants as they had already connected to the national grid..

Tanzania needs more power plants to meet the rising demand occasioned by growing demand from the expanding mining sector.

Ends

leooderaomolo@yahoo.com
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From: Leo Odera Omolo
Date: Mon, Aug 31, 2009 at 2:58 PM
Subject: 48 foreign companies line upmfor Tanzania coal mining investment