Tancoal Energy Limited (“Tancoal”) was incorporated on 3 April 2008, as a joint venture between the Tanzania National Development Corporation (NDC) and Intra Energy (Tanzania) Limited (IETL), a 100% owned subsidiary of a listed Australian company, Intra Energy Corporation (“Intra Energy”) (ASX Code: IEC).
Under the terms of the joint venture agreement, IETL owns 70% of Tancoal and NDC owns 30%. IETL is owned by Intra Energy Corporation and NDC is a law firm, created by an Act of the Tanzanian Parliament in 1962, to identify and develop economically viable projects in partnership with the private sector.
Tancoal was set up to explore and develop the vast Ngaka coalfields located near Songea in southwestern Tanzania. Tancoal intends to develop a coal mining operation in Ngaka to supply feedstock for the coal-fired thermal power plant to be built.
The development of the power plant and associated power transmission infrastructure has the potential to increase Tanzania’s electricity supply by 40%, and will provide long-term economic and social benefits to the Tanzanian people.