Tanesco signs Sh63 billion deal to boost power supply to Geita mine

Dodoma. The Tanzania Electric Supply Company (Tanesco) has signed a Sh63.19 billion contract with Cotech Engineering Company to expand electricity infrastructure serving Geita Gold Mine (GGM), as demand for power at the mine is expected to more than double.

The contract, signed in Dodoma on Thursday, September 3, 2026, involves construction of a 6.65-kilometre high-voltage transmission line from the Mkumbi Geita substation to GGM and a new substation to receive and transform electricity for the mine.

The Deputy Minister for Energy, Ms Salome Makamba said reliable electricity was increasingly important as Tanzania seeks to attract more investment in mining and mineral processing.

“Reliable electricity is no longer simply a public utility issue. It is a critical component of our investment strategy,” she said.

Ms Makamba said the government was investing in transmission infrastructure to ensure electricity capacity keeps pace with demand, particularly from mining and other productive sectors.

Tanesco said the Geita project was also a commercial investment, as the utility currently supplies GGM with up to 36 megawatts (MW), while demand is projected to reach about 80MW as the mine expands.

Tanesco Managing Director Lazaro Twange said additional capacity would be required to support the mine’s expanding operations.

“The mining sector is growing rapidly, and modern mining operations require reliable electricity to run machinery efficiently and increase production,” he said.

The project is being implemented under Tanesco’s Mapato Projects programme, which has been allocated Sh228 billion for 42 projects.

More than 70 percent of the funds are being directed to projects serving mining companies, according to Mr Twange.

“We are investing in areas where there is demand because these projects are expected to generate revenue for Tanesco,” he said.

At GGM, Principal Reliability Engineer, Mr Seif Maftah said the mine’s current maximum demand was between 36MW and 38MW but could rise rapidly to about 80MW as operations expand.

“Our current maximum demand is between 36MW and 38MW, but this is expected to rise rapidly to about 80MW as our operations expand,” he said.

GGM had relied on fuel-powered generators since 2000 before seeking Tanesco’s support after the generators began struggling to meet operational requirements in 2017.

Tanesco began engaging with the mine in 2019, leading to its connection to the national grid in August 2024.

The mine currently receives electricity through two incoming lines, which are expected to become inadequate as demand increases.

The new project is expected to improve power quality and increase transmission capacity.

GGM has urged Tanesco and Cotech Engineering Company to accelerate implementation.

Although the contract provides for completion within 18 months, the mine wants the project completed within 16 months because it could require additional electricity capacity as early as October next year.

“We are asking Tanesco and the contractor to accelerate the project because our expansion plans will require additional electricity capacity,” Mr Maftah said.

Tanesco is also seeking to reduce the cost of major connections through cost-sharing arrangements with large electricity consumers.

Under the model, customers contribute towards infrastructure costs, with the investment recovered through their future electricity consumption.

Mr Twange said the arrangement was part of Tanesco’s efforts to strengthen its financial position while expanding services to major electricity users.

“The cost-sharing model allows customers to participate in infrastructure investment while Tanesco continues to provide the electricity service,” he said.

The Geita project comes as Tanzania seeks to increase mining’s contribution to the economy and promote mineral processing and value addition.

Once completed, the project is expected to provide GGM with additional capacity to expand production while increasing electricity demand and revenue for Tanesco.