While power remains a serious problem in the Republic of South Africa, Tanzania is expanding the delivery of power to the areas of the Tanzanian Greenstone Gold Belt and the Kabanga/Kagera Nickel Belt.
Attention to infrastructural needs of the extractive industries is the best of "open for business" signs.
DJ Tanzania Tanasco To Build 400-KV Pwr Line To Mining Region-Co
Last update: 10:24 a.m. EST Feb. 4, 2009
Feb 04, 2009 (Dow Jones Commodities News via Comtex) — DOW JONES NEWSWIRES
Tanzania’s state power utility, Tanzania Electric Supply Co., or Tanesco, is planning to build a 400-kilovolt power line to the country’s northwestern gold mining regions in a bid to guarantee reliable power supplies to the country’s gold mines, Tanesco said Wednesday.
In a statement, the utility said the new power line is expected to serve the northwestern mining centers of Buzwagi, Kabanga and Tuliwaka.
"The new backbone transmission line will improve power line capabilities for smooth power transfers and reduce technical system losses," said Idriss Rashid, Tanesco’s managing director.
Currently, most gold mines in Tanzania rely on thermal plants to run operations and providing the power line would minimize carbon dioxide emissions and shield gold mines from volatile global fuel prices, Rashid said.
Barrick Gold Corp. (ABX) is planning to start gold output at Buzwagi Gold Mine in the second quarter of this year. Other mines that are expected to benefit from the new power line include Barrick’s Tuliwaka Gold Mine and North Mara Gold Mine as well as the Kabanga Nickel project.
Tanasco says Tanzania’s current power distribution and generation facilities have been constrained by inadequate investments, vandalism as well as increased power demand. The power utility is expected to produce an additional 200 megawatts of power from gas plants by 2010 to meet rising power demand.