Mchuchuma Coal Mine
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Mchuchuma Coal Mine is a coal mine that will provide fuel to the proposed 600-megawatt (MW) Mchuchuma power station in Tanzania.
Background
In September 2011, it was announced that China's Sichuan Hongda Co. Ltd. signed a $3 billion deal with Tanzania to mine coal and iron ore in Tanzania. The investment involved construction of the Mchuchuma coal mine and an accompanying 600-megawatt (MW) thermal power station, the Mchuchuma power station.[1]
A new company, Tanzania China International Mineral Resources Limited (TCIMRL), was created to build the mines, with the Chinese mining company taking an 80 percent stake. The remainder of the company will be owned by Tanzania’s state-run National Development Corporation (NDC); however, there are reports that NDC will be able to increase its stake to 49 percent once Sichuan Hongda recovers its original investment.[2]
In 2023, after years of delays by investor Sichuan Company Hongda (Group) Company Limited, the government of Tanzania began to scout for new investors to develop the mine.[3]
As of early 2025, the Tanzania Government reportedly has plans to implement the Mchuchuma mine in FY 2025/2026.[4] Previous investor Sichuan Company Hongda (Group) Company Limited informed the government that it was at the final stages of selling shares to Shudao Group of China, which will implement the project.[4]
Coal mining at Mchuchuma will originally involve surface mining, with underground mining commencing in later years.[5] The mined coal will largely be used for generation of coal-fired electricity at the Mchuchuma power station. Some of the coal will also go to power the iron and steel works at Liganga, in addition to increasing the national grid electricity capacity.[5]
It is estimated that Mchuchuma coal deposits have more than 400 million tonnes of coal reserves.[4]
Citizens Groups Campaigning on Climate Change
Articles and Resources
Sources
- ↑ "China co signs $3 bln Tanzania coal, iron deal" Fumbuka Ng'wanakilala, Reuters, September 22, 2011.
- ↑ "China draws Tanzania into its embrace" Financial Times, September 23, 2011.
- ↑ "Govt scouts investor for Mchuchuma coal mine", Daily News Tanzania, January 6, 2023.
- ↑ 4.0 4.1 4.2 "Govt to launch Mchuchuma coal, Liganga iron ore project in 2025/26", Daily News Tanzania, February 6, 2025.
- ↑ 5.0 5.1 Mwakaje, Agnes E.G., "Impact Assessments for a Coal Mining Project in Tanzania: Sharing Experience on Resilience and Adaptation to Climate Change", International Association for Impact Assessment, accessed February 2025.
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