Tancoal salutes JPM for barring coal imports

31May 2019
The Guardian Reporter
The Guardian
Tancoal salutes JPM for barring coal imports
  • Vows to power industrialization drive

PRESIDENT John Magufuli’s decision to bar importation of coal from South Africa has seen Tancoal Energy Limited increase production to meet demand of local manufacturers mostly cement industries hence contributing to rapid industrialization the 5th Phase Government.

Tancoal men at work at Ngaka coal mines.

In a presentation at a mining industry conference and exhibition held in Dodoma last week, the company’s CEO, James Shedd said President Magufuli’s order in 2015 also helped save the country from using foreign currency unnecessarily.

“Tancoal is grateful for the decision of the President which has seen the company growing since then and supporting more industries in the country and beyond,” Shedd said noting almost all local cement manufacturers are now using local coal as energy source.

“The President’s decision has led to an increase in the number of industries which are now purchasing coal since 2015 because since then, the number of new customers have emerged in both, Tanzanian market and external market, especially in Uganda and Rwanda,” Shedd revealed.

He named cement companies which are the main customers for Tancoal Coal as Tanga Cement, Lake Cement, Mbeya Cement and Dangote Cement. He further named other main customers of his company’s coal as ceramics manufacturer known as Keda Tanzania Limited, gypsum products makers, Knauf Tanzania Limited and soft drinks manufacturers Sayona Drinks Limited among others.

“Coal is used in the customer’s kilns for heating purposes in the manufacturing process of the relevant products,” he added noting that the company delivers the commodity to clients at its Kitai sales point in Mbinga district, a 50 kilometres distance from Mbalawala coal mines also in the same district.

The company sales 75 percent of its coal to the domestic market while 25 percent of it’s coal is exported to clients in East Africa region mostly to cement and ceramics manufacturers and thus earning the country hard currency.

“Tancoal supplies coal to cement companies which is used to manufacture cement which is in turn used for construction of other industries and big infrastructure projects in the country which all bolster industrialization,” the Tancoal CEO noted naming Standard Gauge Railway, Stigler’s Gorge Project, among others.

As a results of its coal supplies to the domestic market which provides a source of cheap reliable means of energy for the local manufacturers, Tancoal’s role makes potential industrial investors like Keda Tanzania and Hingya Cement put their money locally hence supporting the government’s industrialization agenda.

As a result of the company’s growth in coal volumes being sold, revenue being paid to Treasury has also increased since 2016 giving an example of almost 11.8bn/- paid in royalty and taxes in the past 10 months between July 2018 and April 2019. 

The company has also created massive employment with a total of 419 Tanzanians employed directly by Tancoal, its contractors and suppliers. “Out of the 191 Tancoal employees, 189 are Tanzanians with only two expatriates” the Tancoal CEO added.

In complying with the 2010 Mining Act, that requires every mining company to have in place a corporate social responsibility plan which is to be discussed and approved by the relevant local government authorities, Tancoal submitted its CSR to Mbinga District Council which was approved and covered six months ending on the December 2019.

It will be followed by an annual CSR plan covering the period between July 2019 to June 2020. In addition, Tancoal supports the Mbalawala Women Organization which provides support services to the mine and other Tanclal contractors.

“Tancoal’s idea was to empower the women around the mine, first by training them in various activities and also to enable them economically which gives them a voice for themselves and their families,” the CEO stated.

“The women provide services to the Tancoal mine and to the company’s contractors and suppliers at the sales point which includes meals, laundry, gardening, to name but a few. They are also involved in farming activities and play a big part in trees nursery which is meant for rehabilitation of the mined areas and also planted at various areas to improve the environment” Shedd added.

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