2. Project Title

Mchuchuma Coal to Electricity Project

Project description

The Mchuchuma Coal to Electricity Project is located 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. It is situated in the Ludewa district, Iringa region in Tanzania. The project lies between latitudes 10°14'30" S and Longitudes 34°38'00" E and 34°53'20" E, at an altitude of about 1030m above mean sea level.

The establishment of an open-cast coal mine of 1.5 million tones per annum at the Mchuchuma Coalfield and the setting up of a 400MW linked, mine-mouth Thermal Power Station is intended to increase the reliability and security of grid power in order to attract and enable investments in various sectors of the modern economy of Tanzania. Furthermore, the Project is recognized as one of the two Anchor Projects for the realization of the Mtwara Development Corridor (MtDC), which is a SADC Regional Spatial Development Initiative (SDI) to unlock the vast economic potentials of the Southern Regions of Tanzania with trade and investment linkages to the adjoining districts of the neighboring countries of Malawi, Mozambique and Zambia. The project will consist of:

1. A single product Coal Mine on the Mchuchuma and Katewaka reserves owned by Government of Tanzania. The mine will produce steam coal of the required grade exclusively for power generation.
2. The Power Station that will generate power for the national grid. The power station’s generation output would be 4 x 100MW.
3. A Transmission System is to be erected to connect into the national grid.
4. The development of the village on the shores of Lake Nyasa. The Manda Village will support the identified infrastructure requirements for the power station and Coal Mine.

Total Coal Reserve - 535.75MT

Proven Category - 158.80MT

Indicated Category - 376.95MT

Programme allocation

Mtwara Development Corridor

Country

Tanzania

Economic sector

Mining and Quarrying

Est Capex value ($US millions)

600 - 680

Project stage

Market Appraisal

Current status (WIP)

NDC is conducting a detailed financial and economic appraisal of the integrated project before invitation of expression of interest.

Preferred Mode of Investment

PPP

No.of jobs created

11,964 direct jobs and 32,832 indirect jobs