The government’s decision to ban importation of coal gives an opportunity to local based companies to increase production of coal. Edenville Energy has welcomed the move adding that it is key to boosting local production.
“Edenville welcomes the government’s proactive approach to moving projects from exploration to production and wishes to clarify its position on this significant policy development in Tanzania,” a statement issued by the company reads in part.
According to the company, which is developing a Coal to Power Project in south west of the country, the government is focusing at promoting more investment in the coal sector for both energy and other uses such as cement production. Coal is currently exploited at Kiwira Coal Mine in Mbeya Region and Tancoal Energy Limited Mine at Ngaka in Ruvuma Region. Coal is used as a fuel and in the production of coke, coal gas, water gas, and many coal-tar compounds.
Tanzania possesses considerable resource of low sulphur coal. Coalfields with the highest potential are Ketawaka-Mchuchuma in the Ruhuhu Basin, Ngaka fields in the South-West of Tanzania and Songwe Kiwira fields. A total of about 5 billion tonnes in reserves have so far been identified.
The coal importation ban is meant to see the country’s resources brought into commercial production and the potential of the local coal industry developed more fully.