Mchuchuma Coal Mine

From Global Energy Monitor

Mchuchuma Coal Mine is a coal mine that will provide fuel to the proposed 600-megawatt (MW) Mchuchuma power station in Tanzania.

It was announced in September 2011 that China's Sichuan Hongda Co. Ltd. signed a $3 billion deal with Tanzania to mine coal and iron ore in Tanzania. The investment involves construction of the Mchuchuma Coal Mine and an accompanying 600-megawatt (MW) thermal power station. It is estimated that Mchuchuma coal deposits have more than 480 million tonnes of coal reserves.[1]

A new company, Tanzania China International Mineral Resources (TCMR), has been created to build the mines with the Chinese mining company taking a 80 per cent stake. The remainder of the company will be owned by Tanzania’s state-run National Development Corporation; although there are reports that NDC will be able to increase its stake to 49 per cent once Sichuan Hongda has recovered its original investment.[2]

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  1. "China co signs $3 bln Tanzania coal, iron deal" Fumbuka Ng'wanakilala, Reuters, September 22, 2011.
  2. "China draws Tanzania into its embrace" Financial Times, September 23, 2011.

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