Biteko issues ultimatum to coal investors

Songea/Dar. The Tanzania Mineral Commission has been given a three-month deadline by the Energy Minister, Dr Doto Biteko, to conduct and finish an assessment of all investors that have coal mining permits but have not yet developed their mine sites.

He asserted that this was crucial right now since the global transition to green energy technology will soon have an impact on the need for coal.

Dr Biteko spoke during a coal mining stakeholders meeting in Songea yesterday. Col. Laban Thomas, the Ruvuma Regional Commissioner, expressed worry that some people still own coal mining sites but have not yet done anything with them in a while.

“If they feel that they are unable to work in their territories, Dr Biteko added, “They must develop it even by engaging into mining partnerships with other firms that have the capital, equipment, and technology,” he said.

“After the three-month deadline, the Mining Commission will have to cancel the licences of those that have been unable to develop their sites in accordance with the Mining Act Cap 123.”

He said during the 2021/22 financial year, Ruvuma region produced coal weighing 1,477,351.24 tonnes worth approximately Sh485.545 billion; Songwe Region produced coal 16,328.35 tonnes worth Sh1.122 bil-lion and Njombe Region produced 2,762.76 tonnes worth Sh234.19 mil-lion.

Conversely, during the first three months of the current fiscal year (July to September, 2022), Ruvuma Region has produced 764.816.15 tonnes of coal valued at Sh287.557 billion while Songwe produced 4, 587.9 tonnes valued at Sh331.371 million, and Njombe produced 444.41 tonnes valued at Sh47.04 million.

Speaking during the event, the chairman of the Parliamentary Committee on Mineral and Energy, Mr Dunstan Kitandula said that they would ensure that they provide preliminary information when the watch-dog committee meets with ministry officials by January, 2023.

“We are particularly interested in using coal mining since it is anticipated that by 2050, all fossil fuels, including coal, would no longer be used in any capacity. Since we only have a short time left, this Committee won’t hesitate to act if it notices that some coal sites are not being developed,” he said.

The Ruvuma Regional Commissioner, Mr Thomas, stated in his remarks that mining and coal trading have been important regional economic activities and have grown to be the main source of government revenue.

He said during the 2021/22 financial year, the region collected Sh21 billion from the business while the target was to collect Sh12 billion.

He added that in the fiscal year 2022/23, the region expected to col-lect Sh17 billion but by November 2022, they have actually garnered Sh15 billion.

He said the target now was to collect between Sh30 billion to Sh40 billion come June 2023.