TANESCO, two Chinese firms sign a 63bn/- power transmission project from Mpomvu to Geita Gold Mine

DODOMA: THE Deputy Minister for Energy, Salome Makamba, has witnessed the signing of a 63bn/- contract between Tanzania Electric Supply Company (TANESCO) and Sihotech Engineering Company in collaboration with the Sieyuan Electric Company Limited in Dodoma.

The billion power transmission project linking the Mpomvu substation to the Geita Gold Mine (GGM) is set to boost reliable electricity supply to the country’s major gold producer as mining operations and power demand continue to expand.

The project, which includes construction of a new 220kV receiving and substation equipped with a 90MVA transformer, is expected to strengthen power transmission capacity to the mine while supporting increased production, investment and employment in the mining sector.

Speaking at the signing ceremony, the deputy minister said that the project is part of TANESCO’s revenue-generating projects, whose first phase comprises 52 electricity supply projects for large customers and three transmission projects serving mining areas.

“This  investment will increase the capacity to transmit and supply electricity to GGM, enabling the mine to meet rising demand while increasing TANESCO revenues and creating opportunities for employment, investment and economic growth,” she said.

The Deputy Minister recalled that on August 13, 2024, a 34MW receiving and substation was commissioned, enabling GGM to connect to the national grid.

The connection significantly reduced the mine’s operating costs and helped protect the environment by cutting its reliance on fuel-powered electricity generation.

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Elaborating, she noted that previously, GGM spent approximately 10bn/- to 13.4bn/- every month generating electricity using fuel.

“After connecting to the national grid, the mine significantly reduced those costs. At the same time, using grid electricity has helped us protect the environment by reducing carbon emissions,” Ms Makamba said.

She said the latest project reflects the government’s continued efforts to strengthen energy infrastructure as a key driver of Tanzania’s economic transformation and implementation of the National Development Vision 2050.

For his part, TANESCO Managing Director Lazaro Twange said the utility began supplying GGM with electricity in 2024, initially providing 16MW.

However, he said, expansion of mining operations and the installation of additional equipment had pushed up the mine’s electricity requirements, making the existing infrastructure insufficient.

“The implementation of this project will help meet the growing electricity demand and ensure that GGM continues to receive reliable power for its production activities,” Mr Twange said.

A representative of GGM’s owners thanked the government for the investment, urging authorities to ensure the project was implemented swiftly and completed on schedule.

He said timely completion would enable the mine to sustain and expand its mining and production activities, further contributing to Tanzania’s national income.