Ngaka Coal Mine

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Ngaka Coal Mine is an operating coal mine in Ruvuma, Tanzania.

Location

Table 1: Project-level location details

Mine Name	Location	Coordinates (WGS 84)
Ngaka Coal Mine	Ruvuma, Tanzania	-10.646333, 35.642363 (exact)

The map below shows the exact location of the coal mine:

Loading map...

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Project Details

Table 2: Project status

Status	Status Detail	Opening Year	Closing Year
Operating	–	–	–

Table 3: Operation details

Note: The asterisk (*) signifies that the value is a GEM estimated figure.

Capacity (Mtpa)	Production (Mtpa)	Year of Production	Mine Type	Mining Method	Mine Size (km2)	Mine Depth (m)	Workforce Size
1.5	0.75	2021	Surface	–	–	50*	457*

Table 4: Coal resources and destination

Total Reserves (Mt)	Year of Total Reserves Recorded	Total Resources (Mt)	Coalfield	Coal Type	Coal Grade	Primary Consumer/ Destination
367	–	–	–	Subbituminous	Thermal	Ngaka power station

Table 5: Ownership and parent company

Owner	Parent Company	Headquarters
Tancoal Energy	Intra Energy Corporation [50%]; National Development Corporation of Tanzania [50%]	Australia, Tanzania

Expansion/Extension

Table 6: Project status

* Added capacity of a coal mine refers to the enhancement in the mine's production capabilities beyond its initial production capacity.

Status	Status Detail	Project Type	Project Phase	Added Capacity (Mtpa)*	Start Year
Shelved	Announced	Expansion	Stage 3	3.5	2011

Note: The above section was automatically generated and is based on data from the GEM April 2024 Global Coal Mine Tracker dataset.

Background

The Ngaka coal mine is operated by Tancoal Energy, a joint venture of Intra Energy Corporation, National Development Corporation of Tanzania (NDC), producing 0.5 million tonnes per annum in 2020 near Ruvuma, Tanzania. 

The mine would supply coal to the proposed Ngaka power station. Currently, the mine plans to increase production to 4-5 million tonnes per annum, tripling its current output. The Ngaka project is the largest operational coal mine in Tanzania and in East Africa and is situated in western Tanzania.

The Ngaka Basin comprises the Mbalawala sub-basin in the south and the Mbuyura-Mkapa sub-basin to the north. Total proven coal resources amount to 367 million tonnes.

The Ngaka Coal Project is operated by Tancoal Energy, which is a joint venture between the National Development Corporation of Tanzania (NDC) and Intra Energy Tanzania Limited (IETL), a 100% owned subsidiary of Intra Energy Corporation (ASX:IEC).

Tancoal commenced mining operations at Ngaka in 2011. In FY 2020, sales were 523,027 tonnes, compared to 788,702 tonnes in FY 2019 (-34%). The decrease in sales was due to the effect of Covid-19 on the business of both domestic and export customers and competition from small miners. Production also decreased by 34% in FY 2020 to 496,852 tonnes, compared with 748,874 tonnes in FY 2019.

The Ngaka Coal Project is expected to produce between 2-3 million tonnes of coal for export. At an estimated maximum production rate of 4-5 million tonnes per annum, the Ngaka Coal Project has sufficient proven coal resources for over 50 years of profitable, low-cost production.

• Operator: Tancoal Energy
• Owner: Intra Energy Corporation, National Development Corporation of Tanzania (NDC)
• Location: Ruvuma, Tanzania
• Coordinates: -10.646333, 35.642363 (exact)
• Status: Operating, Proposed
• Production: 0.5 million tonnes per annum (2020)
• Additional Capacity: Proposed expansion to 4-5 million tonnes per annum
• Mine Type:
• Mineable Reserves: 412 million tonnes with 367 million tonnes proven
• Start date: 2011
• Life of the mines: 50 years
• Coal Type:

Project History

In August 2011 Australia's Intra Energy Corporation (IEC) said it planned to invest US$236 million in Tanzania's first privately funded coal mine and a coal-fired power plant. At the time IEC's local unit in east Africa, Tancoal Energy, had spent US$23 million on exploration and initial development costs of the Mbalawala coal mine, in the south-west of Tanzania. Plans included a 120 MW power station at Mbalawala.

In March 2012 IEC signed an MoU with Tanzania Electric Supply Company Limited (TANESCO) for the development of a 120 MW to 200 MW power station with the Tancoal coal mine as the coal supplier. Construction was originally planned to begin in 2014. The MoU was extended in March 2013 and changed to a 200 MW power station.

In a 2013 investor presentation, Intra Energy said 200 MW of the power station was in design and sited near the Tancoal mine, and planned for operation in 2017. The company said it was in discussion with Tanzania for an additional 120 MW power station in the north of the country. As of 2014 IEC describes the power station on its website as stage 2 of its Ngaka coal project. Plans include a 200 MW coal-fired power station sited adjacent to the Tancoal mine, and a second power station of 120 MW proposed near the Malcoal mine in the country of Malawi.

In March 2015 the Tanzania Minister for Energy and Minerals said plans were underway to construct a 600 MW coal plant to generate electricity from Ngaka Coal in Mbinga in phases, with the first 200MW to be generated by 2019. The tender for the project was expected to be floated in June 2015, and IEC's Tancoal was invited to bid on the project. In June 2015 the Energy Minister said potential investors had quoted expensive tariffs that were deemed inviable for the project. Operation is still planned for 2019.

In November 2015 IEC signed an MoU with Sinohydro for a 200 MW coal plant at Ngaka. It may be increased over time to 400 MW.

In October 2016 Intra Energy signed a MoU with Sinohydro to develop a 2 x 135 MW coal plant at Ngaka. The two companies will form a Special Purpose Vehicle. Under the agreement, Sinohydro is the major project shareholder of the SPV and will conceive, build, finance, and operate the plant. Tancoal Energy will provide coal, estimated at 1.2 million tonnes per year at its mine located 7 km from the plant.

In August 2017, talks recommenced with SinoHydro regarding the letter from the Minister of Energy and Minerals to move ahead on the Ngaka Power Station project. It was agreed to renew the MOU and establish a joint venture vehicle once equities are established.

In October 2018, Intra Energy Corporation said the company planned to submit the Request for Qualification documents for the project to the Tanzania Electricity Supply Company (TANESCO), in line with the government’s new initiative regarding the development of independent power projects.

A November 25, 2021 press release announced IEC had reached an agreement to transfer ownership of Intra Energy Tanzania Limited (“IETL”), which held the Company’s Tanzanian Coal interests, to Mirambo Mining Limited (“MML”), a Tanzanian company. The press release explained that "[a]s the Company exits the production of fossil fuels in Africa, it will now concentrate on base and precious metal opportunities in Australia, with a particular focus on the new energy metals." Mirambo Mining advised they would give the Government of Tanzania the opportunity to match the terms of the sale and purchase agreement under similar conditions should they so desire.

As of December 2021, there were no records of Intra Energy having submitted new Request for Qualification documents or receiving any government approvals. The expansion project therefore appears to be shelved.

Articles and Resources

Additional data

To access additional data, including an interactive map of world coal mines, a downloadable dataset, and summary data, please visit the Global Coal Mine Tracker on the Global Energy Monitor website.