Tanzania Energy and Minerals Minister Prof. Sospeter Muhongo announced that Ministry’s latest estimates of coal reserves reached 5 billion tonnes. This is more than 3 times the previous estimates that were at 1 .5 billion tonnes in identified reserves.
The country’s only coal mine at Kiwira has an average annual output of 35,000 tonnes – all of which is consumed mostly locally for power generation.
In September 2011 China’s Sichuan Hongda Co. Ltd. signed a $3 billion deal with Tanzania to mine coal and iron ore in Tanzania.
The investment involves construction of the new Mchuchuma Coal Mine and an accompanying 600-megawatt (MW) thermal power station.
It is estimated that Mchuchuma coal deposits have more than 480 million tonnes of coal reserves.
According to Minister Muhongo, Tanzania’s government will focus on generating power from a mix of natural resources, including natural gas, coal, hydropower and renewable energy sources.
Tanzania natural gas reserves estimates currently stands at 33 trillion cubic feet (tcf).
Prof. Muhongo announced that the national natural gas policy would be finalised soon.
Want to know more about Energy in Tanzania? Our free Tanzania Business and Investment Guide 2026 covers Energy, plus regulations, key sectors, and investment opportunities — all in one place.
Download Free Guide
