Australia's Intra Energy Corporation (IEC) plans to invest $236 million in Tanzania's first privately funded coal mine and a coal-fired power plant to reduce nation's reliance on hydro power, its chairman told Reuters on Wednesday. IEC Executive Chairman Graeme Robertson said mining was expected to begin in the coming week, with the first consignment of coal expected in September.
The mine was projected to expand its output to 500,000 tonnes a year by 2013 - with a long-term maximum output capacity of 5 million tonnes a year, he said. IEC's local unit in east Africa's second largest economy, Tancoal Energy, had already spent $23 million on exploration and initial development costs of the Mbalawala mine, in the south-west of Tanzania, Robertson said.
"This investment will increase by some $93 million (in order) to increase the mining to a rate of up to 5 million tonnes per year," Robertson said in an interview.
"We are currently meeting compensation payments this week and will commence proper mining next week ... The first shipments of coal will commence in September." He said the company would invest an additional $120 million in a coal-fired power plant near the mine.
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