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Mchuchuma power station

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This article is part of the Coal Issues portal on SourceWatch, a project of CoalSwarm and the Center for Media and Democracy. See here for help on adding material to CoalSwarm.

The Mchuchuma power station is a proposed 600-megawatt (MW) coal-fired power station in Tanzania associated with the Mchuchuma Coal Mine.

Location

The map below shows the location of the Mchuchuma, Iringa, Tanzania, but not the exact location of Mchuchuma power station.

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Background

In September 2011 China's Sichuan Hongda Co. Ltd. signed a US$3 billion deal with Tanzania to mine coal and iron ore in Tanzania. The investment involves construction of the Mchuchuma Coal Mine, a 220kv transmission line between Mchuchuma and Liganga for supplying the Liganga Metallurgical Complex, and an accompanying 600-megawatt (MW) thermal power station. 250 MW from the power plant will be devoted to the Liganga Metallurgical Complex, with the remaining 350 MW provided to the national grid. It is estimated that Mchuchuma coal deposits have more than 480 million tonnes of coal reserves.[1][2]

In 2013 it was reported that the power station would be constructed over the next three years, with the first 300 MW planned by 2015.[3]

However in October 2014 it was reported that construction would begin on the projects in 2015, and expected to be completed by 2019.[4]

The estimated cost for Mchuchuma and Liganga iron ore mines and plants are US$3 billion, which will be sourced in partnership between the Tanzania government and Sichuan Hongda. In January 2015 it was reported that the government was having difficulty securing the funding, given budget constraints.[5]

In May 2016 it was reported that work on the mining projects had been pushed to 2017.[6]

According to an October 2016 report, the process of evaluating compensation for 126 households around the Mchuchuma projects (290 individuals) and the 19 households and farms around the Liganga project (299 individuals) was completed in September 2015 but the process of compensating the villagers was not subsequently carried out.[2]

In March 2017 it was reported that the government was in the midst of settling issues with investors regarding incentives and power tariffs. It was expected that conclusion of the negotiations would lead for funds to be released to compensate people who will be relocated for the projects. Mining would then begin.[7]

According to a March 2017 report, the mines ministry had opened an inquiry into the performance of Sichuan Hongda Group in the wake of disappointment with the firm's performance.[8]

In September 2018 it was reported the country will need US$645.75 million for the plant, and that the project’s feasibility studies still need to be actualized.[9]

Project Details

  • Sponsor: Tanzania China International Mineral Resources Limited
  • Parent company: National Development Corporation, Sichuan Hongda Group
  • Location: Mchuchuma, Iringa, Tanzania
  • Coordinates: -9.25, 34.25 (approximate)
  • Status: Pre-permit development
  • Gross Capacity: 600 MW (4 x 150 MW)
  • Type: Subcritical
  • Start date:
  • Coal Type:
  • Coal Source: Domestic
  • Source of financing:

Articles and resources

References

  1. "China co signs $3 bln Tanzania coal, iron deal" Fumbuka Ng'wanakilala, Reuters, September 22, 2011.
  2. 2.0 2.1 Rosemary Mirondo, "Tanzania: Sh6 Trillion Coal, Iron Ore Projects Hit Snag," allAfrica, 20 October 2016
  3. "Waiting for the dragon to spit fire," Mjengwa Blog, Oct 2, 2013.
  4. "Tanzania to start $3bn iron ore and power projects in 2015," Mining News, October 1, 2014
  5. "$3bn needed to develop Mchuchuma, Liganga," The Citizen, Jan 14, 2015
  6. "Coal and iron-ore projects in Tanzania to start early 2017," CR, May 4, 2016
  7. Bernard Lugongo, "Tanzania: Liganga Coal Mining Starts April," allAfrica, 23 March 2017
  8. "Sichuan Hongda Group could be about to lose its license," The Indian Ocean Newsletter, 24 March 2017
  9. "Tanzania seeks $3.6 billion for 9 energy projects," Ecofin Agency, 27 September 2018

Related SourceWatch articles

Mchuchuma Coal Mine

External resources

External articles

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