Dr. Dotto Biteko, Minister for Minerals, recently expressed his delight with the pace of the construction of the GGML power substation. The power substation will be owned by the Geita Gold Mining Company.
The mining company will be able to shift from generating electricity using oil to using the less expensive National Grid electricity thanks to the project. The 13-kilovolt power plant by the GGML mine will cost approximately $50 billion to develop from the ground to completion.
The six-kilometer power transmission line to the mining site is also under construction by the Tanzania Electricity Company (TANESCO). This was said by Minister Biteko during his recent visit to the GGML mine in the Geita region.
The Minister also expressed his hope that by March of 2023, GGML would start using the national grid for electricity. GGML plans to shift from using oil-produced electricity to using TANESCO-generated power. The substation under construction is expected to cost 20 million US dollars (46.6bn).
Will the GGML power substation have an impact on the cost of the company’s operations?
The project’s completion will lower the cost of mining projects. Also, it will reduce the cost of electricity production by more than 50%. This means that one unit will cost nine cents instead of paying nineteen cents. This is according to Simon Shayo, vice president of GGML’s parent company, AngloGold Ashanti. The company manages sustainable projects in Ghana and Tanzania.
He said that since 2018, the GGML mine has constantly been using more than 40 MW of electricity generated by diesel-powered generators. Additionally, it was said that TANESCO expects to earn 5 billion from electricity sales each month. This will be after the project to deliver electricity to the GGML Company is completed.
The electricity produced will also serve the neighboring regions like Mwanza as well as Kagera.
