The mine is owned in a structure where Intra Energy owns 70% of it and the National Development Corporation of Tanzania owning 30%.
This achievement maintains the target level of 600 000 tons per year.
Sales were 48 857 tons which is very close to the record tons sold in January 2017 of 49 241 tons. A stockpile of 20 489 tonnes had been built at 31 July.
On 1 August 2017 Twyford Ceramics signed two five-year contracts on a take or pay basis with Tancoal Energy.
The contracts commence in September for 6 600 tons per month for their Kenyan plant and 4 900 tons per month for their plant in Tanzania.
Twyford Ceramics’ Kenya plant is currently a customer of Tancoal Energy, the plant in Tanzania is new. The new screen plant has arrived at the Port of Dar es Salaam. It is being transported to site and is expected to be in operation by the end of August.
The new crushing plant is in transit and is expected to be in operation from October. KCB Bank of Tanzania approved a loan of US$936 000 @ 8% over 60 months to finance 80% of the new crushing and screening plant.
The Regional Commissioner of the Ruvuma Region, where the mine is situated, visited the mine to see implementation of the mining production increases demanded by the government.
On 24 July, Graeme Robertson, chairman of the Intra Energy board, Intra Energy CEO Jim Shedd and the Tancoal Energy sales team visited the Mtwara Port in Southern Tanzania in preparation for coal exports from the region.
With the coal prices in South Africa continuing to increase, Intra Energy is receiving enquiries from countries near Tanzania, such as Kenya, Ethiopia and Mauritius (among others) regarding the possibility of supplying them with coal.
The port has all the facilities available to allow for exports. Initial discussions have considered using barges as an effective way to supply coal to some of the regions near Tanzania.
Talks have recommenced with SinoHydro regarding the letter from the Minister of Energy and Minerals to move ahead on the Ngaka Power Station project.
It was agreed to renew the MOU and establish a joint venture vehicle once equities are established.
"July was a productive month with increased coal output despite problems with the new contractor’s performance,” states Intra Energy chairman, Graeme Robertson.
“Sales were well below the market levels indicated to the government by Tanzanian consumers so a decision has been taken to aggressively enter the export market in competition with South African coal while coal prices ex Richards Bay remain in excess of US$85 per ton. Logistical solutions are being evaluated.”
Feature image credit: Wikimedia