Diversified mining and energy group Intra Energy Corporation (IEC) has welcomed the Tanzanian Government Directive issued on 10 August 2016 which paced a blanket ban on imported coal.
The Directive states that imported coal from outside Tanzania is to cease immediately, giving customers until the 28 August to enter into supply contracts with coal miners.
It also orders coal miners to commit to ensuring an adequate supply of coal to meet customer needs and instructs customers to give at least 20 days’ advance notice before pickup of coal.
Intra said the Directive is expected to double the coal sales from Tancoal Energy Limited’s Ngaka mine in the second quarter of FY17 to approximately 40,000t per month.
According to the company, measures have already been undertaken to double production at the Ngaka mine including the introduction of a new contractor fleet of equipment and increasing the availability of Tancoal’s mining equipment.
“IEC and its subsidiary Tancoal are very well placed to take advantage of this Directive. Its 70% owned Tancoal mine (30% owned by the National Development Corporation) is the only significant and fully operational coal mine in Tanzania,” the company said in a statement.
“It will ensure continuous and growing employment for Tanzanians in our operations and is very positive for the growth of IEC and its Tanzania partner, the National Development Corporation, in the expanding coal operations in the Tancoal Mine.”