By Alfred Zacharia
Geita,
Tanzania – In a strategic move set to reshape its operational landscape, Geita
Gold Mine (GGM) has officially transitioned from costly fuel-based power to
grid electricity.
A grand inauguration
of a new 34 MW substation by Deputy Prime Minister and Minister of Energy, Dr.
Doto Biteko, is poised to significantly reduce the mine's energy costs while
enhancing government revenues.
Previously,
GGM was burdened with monthly operational costs of TZS 130 billion, a
substantial portion of which—TZS 13.4 billion—was dedicated to fuel for power
generation.
The newly
inaugurated substation, constructed at a cost of USD 24 million by GGML, will
reduce the mine's energy expenditure by 92 percent.
"This
transition to grid electricity marks a significant milestone for GGM. The
financial relief from lower energy costs will allow us to reinvest in the mine
and expand our operations," said Simon Shayo, Vice President of AngloGold
Ashanti-Tanzania for Sustainable Projects.
As the new
substation powers GGM’s operations, the mine’s reduced costs are expected to
translate into better employee benefits and further community investments.
"This
transition is not just a win for GGM but a significant step forward for
Tanzania’s economy. We look forward to the continued partnership with the
government to achieve even greater success," said Shayo.
The
project highlights the fruitful collaboration between Tanzania's government and
the private sector.
Abubakari
Issa, representing the Managing Director of Tanzania Electric Supply Company
Limited (TANESCO) said the government has invested TZS 8.04 billion in the
construction of a 33 kV power line to support the substation. This investment
is expected to generate TZS 2 to 3 billion in additional monthly revenue to the
national power supplier.
"This
project is a testament to the strong partnership between the government and
private sector. It will not only enhance GGM’s efficiency but also increase
TANESCO’s revenue, benefiting the national economy," said Dr. Biteko
during the inauguration.
Dr. Biteko
emphasized that this collaboration is a direct result of President Dr. Samia
Suluhu Hassan's commitment to fostering a business-friendly environment in
Tanzania.
"President
Samia’s focus on supporting the private sector is clearly paying off. This
initiative shows how government and business can work together to achieve
significant economic gains," he added.
The
positive impact of this project extends beyond the mine itself. In Geita
region, 99.38 percent of villages are now connected to electricity, a testament
to the government's ongoing efforts to improve infrastructure.
"The
electrification of our region is progressing steadily. Out of 486 villages in
Geita region, 483 have been connected to the grid. This is a major
achievement," said Dr. James Mataragio, Deputy Permanent Secretary of the
Ministry of Energy.
With TZS
8.5 billion allocated to further electrify mining areas and industries, the
region is on a clear path toward full electrification, with implementation
already reached 41 percent.
"We
are committed to ensuring that every corner of Geita benefits from the national
grid, and this project brings us closer to that goal," Dr. Mataragio
added.
The
benefits of reliable grid electricity are also being felt by small-scale miners
in the region. Over the past three years, 19 small-scale mining sites have been
connected to electricity, leading to the production of approximately 11,000
kilograms of gold.
"Thanks
to the government’s efforts, small-scale miners like us are now able to
increase our output. The connection to the grid has made a huge difference in
our productivity," Geita Regional Commissioner Martine Shigella said in
the event.
This
transition underscores how strategic infrastructure investments can drive
growth and development, positioning both the company and the country for a more
prosperous future
