Africa-Press – Tanzania. THE Tanzania Electric Supply Company (TANESCO) and State Mining Corporation (STAMICO) have inked a deal to produce electricity from coal targeting to pump into the national grid about 200 megawatts of electricity.
Speaking immediately after signing the agreement at TANESCO headquarters in Dodoma, STAMICO Acting Director General, Dr Venance Mwasse, said there was over 300 metric tonnes of coal at the area. He said the amount was enough to produce electricity for the nex
“This project will help add value of the precious mineral in the country, allowing the nation to benefit greatly,” he said, adding that it is expected to start after the experts have conducted a thorough feasibility study.
According to the acting DG, the project was in line with the government industrial economy drive which demands for more and reliable electricity production. Speaking at the signing ceremony, TANESCO’s Director General, Dr Tito Mwinuka, noted that the government was committed to increasing electricity production into the national grid through different sources, including coal.
He added that the signed deal was part of the initial agreement between the two institutions as the experts commence initial studies any time soon. Dr Mwinuka observed that production of electricity from coal would reduce the cost of power in the country and increase stability at the national grid.
The TANESCO boss stated that currently there were mainly two sources of electricity production in the country as 55 percent come from gas while 36 percent from hydro production.
“Power production from coal therefore will be the third source of production and probably the cheapest” he said.
According to Dr Mwinuka, the mineral at Kiwira have not been exploited for a long time and once the production starts, it can produce 200 megawatts of electricity to the national grid.
He said TANESCO will have the responsibility to oversee implementation of the projects, adding that it will help connecting many Tanzanians with the utility.
