We initiate, develop and guide implementation of commercially viable projects with the private sector.

Introduction:

The National Development Corporation has completed feasibility study on the Mchuchuma-Katewaka coal field for opening a surface Coal Mine along with Detailed Environmental Impact Assessment.

The techno-economic studies conducted have established the technical feasibility and economic viability for the opening of an open cast colliery with production capacity of 1.5 million metric tonnes per annum based on a detail geological study.

This picture shows a surface Coal Outcrop.

Location:

The Mchuchuma - Coal Field is located some 600km inland in the Southern Western part

of Tanzania near Lake Nyasa and close to its border with Malawi in the West and

Mozambique in the South. It is situated in the Ludewa district of Tanzania. The project lies

between Latitudes 10° 14’ 30" S and 10° 21’ 30" S and Longitudes 34° 38’ 00" E and 34° 53’

20" E ,at an altitude of about 1030m above mean sea level. The TAZARA Railway line from

Tanzania to Zambia, passes through Makambako town from which the coal field can be

approached. The Mchuchuma-Katewaka coalfield is about 287 km from Makambako, which

is also on the TANZAM highway from Tanzania to Zambia.

Geology:

The coalfield occur in the South- Western part of the country in the Nyasa- Rukwa Zone of Karroo outcrops. The Mchuchuma-Katewaka coal field is geologically divided into two parts viz Mchuchuma on the West and Katewaka on the East. The two parts are separated by a gap of about 2 kms largely caused by faulting which shift outcrops of the coal seams in the Katewaka area. The deposition sequence reveals two prominent coal measures rock viz Lower Coal measure(K2) and Upper Coal Measure (K4). The economically important coal seams in all coal fields in Tanzania occur in the Lower Coal Measure(K2) except in the Mhukuru coal field where coals occur in the upper coal Measures. In Mchuchuma-Katewaka Coal Fields, the Lower coal measure (K2) have been divided into Top shale Coal Measure(K₂e₂) and Bottom Sandstone Coal Measure(K₂e₁) with more or less sharp boundary between the two.

Coal seams in Mchuchuma coal field occur in both the upper K₂e₂ or coal shale and the lower K₂e₁ or coal sandstone measures. The type and manner of the occurrence of the coal seams in the two coal measures are different from each other. The lower coal bearing bed of sandstone coal measure is the most important rock formation in the area, containing the best known and best developed coal seams. The bed contains six coal seams and total thickness of this bed varies from 45 to 75 meters.

The upper coal bearing bed of shale coal measures is very distinctive formation consisting of dark grey mudstones and shales and thin seams of coal or shaly coal. The bed contains ten coal seams of some consistency.

Coal Reserves and Coal Quality:

The coal reserves of both Mchuchuma and Katewaka Coal fields have been estimated based on Geological exploration carried out.

Seamwise, thicknesswise and grade wise reserves have been estimated for both explored areas. The total coal reserves of 535.75MT comprising of 158.80 million tons in the proved category and 376.95 million tons in the indicated category have been estimated in the two parts of the coal fields.

Proved category:

Mchuchuma - 125.30 million tons

Katewaka - 33.50 million tons

Out of the total 158.8MT of the proved reserves in the two areas 55.58MT occur in coal seams more than 2m in thickness, 39.09MT of this occur in Mchuchuma area and 16.30MT in Katewaka area.

The coals have a potential use for Thermal Power generation. The heat value of the coals also indicates the possibility of its usage for cement making and other process industries. Summary of proved and indicated reserves (MT) is given below:-

This picture shows another surface Coal Outcrop.

Gradewise proved reserve details are as follows:-

The estimated average quality of surface run-of-mine(ROM) coal of Mchuchuma and Katewaka pits are given below:-

Mining options:

Mineable reserves, waste quantities and average stripping ratios for the various mine boundary options studied for the Mchuchuma pit are summed below.

Based on economics , mine boundary option IIB has been selected. The selected mine boundary option provides the necessary flexibility to extend the boundaries further depending upon the cost of inputs and transfer price of coal in future.

A specific surface mine proposal has been devised based on production of 1.5 million tonnes per annum of which 1.38 million tonnes of coal per year will be delivered to the 400MW mine mouth power station which will supply electricity to the national grid.

The balance 0.12 million tonnes coal per year will be used to meet the demand of industries.

The planned mineable reserve base will enable the surface mine to sustain the power station for the economic plant life of 25 years as well as meet additional energy demand which may need to be fulfilled requiring higher coal production and enhanced level of surface mining operations.

Mining Method:

The basic method proposed is a combination of open pit mining and strip mining techniques because of specific deposit features i.e. strata gradient, faults, deposit configuration & topographical features. The material taken out of the excavation during the initial mining stage will be the coal together with sufficient superficial and rock strata (overburden & interburden) to create safe and adequate working room.

Coal excavation and interburden/overburden removal will be carried out using hydraulic loading shovels with proper rating of bucket capacity. Coal transport and interburden transport will be carried out by rigid chassis dump trucks.

Above picture shows Coal on the surface ideal for open pit mining.

Equipment Option:

The top size of hydraulic loading shovels will have a nominal rated bucket capacity of 10M³ which will be used for excavation of waste material loading on to rigid chassis dump trucks of 85T Class.

Coal excavation and interburden removal will be carried out using hydraulic loading shovels with a nominal rated capacity of 4.5M³ and backhoes with a capacity of 3.6M³. Transport will be 40T Class rigid chassis dump trucks.

The estimated initial capital investment for the mine will be US$ 122.0

Project Implementation:

NDC is making all preparations for implementation of the project expected to start in the year 2003. The project component involve establishment of an open cast mine of 1.5 million tonnes per annum. Mchuchuma Coal Project is proposed to be developed in the private sector. A successful implementation of the project requires development of the physical infrastructure.

To implement the Mchuchuma Colliery Project in the private sector it is proposed to create a private Coal Mine Subsidiary owned by NDC. This Subsidiary will then select a Coal Mine Operator of international reputation and experience to be a partner in a joint venture (JV) Company to develop, build and operate the Mchuchuma Colliery.

The JV partner will have majority shareholding and the Management. The Colliery construction is expected to be implemented by an Engineer, Procure, Construction (EPC) Contractor. NDC and its JV-partner will provide project supervision for the execution of the EPC Contract. Mine operations may be handed over to a Mining Contractor with NDC and JV-partner providing overall monitoring of the Mining Contract.

For further information please contact:

   The Managing Director

      National Development Corporation

       Development House, Kivukoni Front/Ohio Str.

        P. O. Box  2669 Dar es Salaam - TANZANIA

              Tel: +255 - 22 - 2112893 or 2111460/3

                          Fax: +255 - 22 - 2113618

                          E-Mail : ndc@cats-net.com