Tanzania's state power utility, Tanesco, has improved generation
at two main hydro stations following the onset of the rainy season
and has dropped plans to slash supplies to gold mines, an official
said Tuesday.
Generation at the 180-megawatt Kihansi Hydro power station and
at the 204MW Kidatu Hydro power station has improved following
rising water levels, Tanesco spokeswoman Badara Masoud told Dow
Jones Newswires.
"We won't be reducing power supplies to the mines because we now
have improved generation," she said, adding improved generation has
reduced the national power deficit to 104MW, from 230MW in
February.
A Tanzanian parliamentary panel proposed last month that power
supplies to gold mines be slashed by around 50MW in order to make
power available to other sectors. This was opposed by the Chamber
of Minerals.
Tanzania is Africa's fourth-largest gold producer.
According Masoud, Tanesco is now facing generation shortfall
only at the 80MW Mtera Dam, but hopes to improve generation in the
next few weeks with more rains.
The utility has also issued tenders for thermal generation of at
least 260MW before the end of the year to help ease the
shortage.
Gold mines connected to the national grid include Bulyanhulu,
Buzwagi and North Mara, all operated by London-listed African
Barrick Gold (ABG.LN); Resolute Mining Ltd.'s (RSG.AU) Golden Pride
Mine; Tanzanite One Ltd. (TNZ.LN) and Williamson Diamonds Mine.
Barrick's Tuliwaka Gold Mine and South Africa-based Anglogold
Ashanti Ltd.'s (AU) Geita Gold Mine rely on fuel-fired thermal
plants and aren't connected to the grid.
Tanzania's peak power demand is estimated at 830MW.
-By Nicholas Bariyo, contributing to Dow Jones Newswires;
256-75-2624615 bariyonic@yahoo.co.uk
