How Tanzania’s coal found its way to European markets

How Tanzania’s coal found its way to European markets

Coal in Tanzania has become essential in transforming energy production. Tanzania’s coal reserves at estimated to be 1.9 billion tonnes.

  • Tanzania coal is now exported to foreign markets.
  • Tanzania’s Mchuchuma coal deposits has around 540 billion tonnes of reserves.
  • Mining in Tanzania is one of the most vital sectors in the country

Tanzania’s mining has become the most vital vein in the nation’s economy. After a series of policy and law changes within the mining industry, Tanzania’s mining company, Ruvuma Coal limited, has expanded the nation’s coal materials to European markets.

According to information from The Citizen, the vital breakthrough is a product of a one-year contract signed by Ruvuma Coal Limited and Hong Kong-based Kenexon Company.

The two companies will impact the coal mining landscape in Tanzania as at least 60,000 tonnes of Coal will be shipped off to the Netherlands.

Further, the agreement is now in execution and the consignment was transported on a ship known as Southern Cross, which docked at the Mtwara Port on May 31 2022.

Mining in Tanzania has become an essential activity. In 2019 Tanzania earned around $2.3 billion with minerals exports, a significant increase over the 2018 level of $1.6 billion (International Trade Administration).

Mining and quarrying operations contribute significantly to enhancing the Tanzanian economy. The sector contributed extensively to Q1 2021 GDP. The sector recorded 10.2 per cent of the GDP.

The Tanzanian company has grown enormous wings as it now ships its coal to Europe, India, China, Egypt, and Senegal and exports it to Ghana and Ivory Coast (Citizen).

Tanzania has more than gold and natural gas reserves. It has coal reserves, too, in abundance. Tanzania’s coal reserve is estimated at approximately 1.9 billion tonnes, which is 25 per cent proven (Tanzania Invest).

According to Tanzania Invest, coal projects are located in south-western Tanzania and include the Ngaka coal mine, the Rukwa coalfields, and the Kiwira coal mine.

Mchuchumba coal deposits only, located in the Southern Highlands in Tanzania, have massive deposits estimated at 540 million tonnes of reserves, enough to produce 600 MW for over 100 years. 

Over time, coal mining in Tanzania has grown. Coal production reached 712,136 tonnes in 2019, compared to 257,321 tonnes in 2015.

Coal in Tanzania is used for industrial applications. Tanzania’s industries use coal for thermal applications, particularly in cement factories and agro-processing industries.