Intra Energy sales were lower than expected which reflected the impact of heavy rains causing a slowdown in cement usage.
This enabled Intra Energy to build stockpiles at the coal supply area at Kitai with the installation of an additional weighbridge to increase the turnover of loaded trucks.
Tancoal Energy received a formal letter from the Ministry of Energy and Minerals in May under the heading “Re: Development of the 270 MW coal to power project” which stated “…..The ministry appreciates your desire towards the development of coal to power projects in Tanzania, especially through your mining license No. ML-439/2011. In view of the above, your company is advised to start the development of the said project by using the allocated coal reserves as per the PSMP (Power System Master Plan)”.
Intra Energy is in discussions with its power station partner, Sinohydro, to move forward as per the ministry’s request.
During the month in review discussions have commenced between Intra Energy and Chinese controlled Sinoma and Hengya Cement who have announced the development of a US$1 billion cement and power complex at Tanga which will export approximately 70% of its production.
Intra Energy expects that this will generate a coal requirement of up to 1 200 000 tpa from 2019. During the month, initial survey work was undertaken to determine best potential routes to the coast for barge delivery into Tanga as well as to be able to offer supply into a new coal-fired coastal power station to be built in Kenya.
Intra Energy’s second phase production and supply expansion commenced with the intention to raise production to over 1 000 000 tpa to cater for rising demand generated by Tanzania’s industrial development and regional exports.
“May represented a turning point in our operations and we are moving forward with a very solid Tancoal Team, good partners and new market potential,” says Intra Energy chairman, Graeme Robertson.
“We are now addressing the pricing of our coal to increase to South African levels and generating long term contractual arrangements to support Tanzanian industrialisation.”