Thursday, June 14, 2012

Government invites bids for Coal exploration

On Wednesday, the Ministry of Energy said it was seeking to invite potential investors to bid for the exploration and development of 2 coal blocks in eastern province; this comes as the country faces a growing demand for power.
The coal will serve as an alternative energy source that is expected to reduce the reliance on geothermal and diesel-powered electricity. In line with Vision 2030 of having an industrialized Country, the coal will also be used in the cement and steel industries.
According to the tender advertised bidders are required to show they can raise over $200 million for investment and potential of setting up projects with a minimum output of 3000 tons each day. The bids must be submitted before July 16 this year.
Last year the government issued development rights for 2 blocks in the Mui basin, C and D, to Chinese company Fenxi Mining Group. Mui Basin of Kitui and Mwingi has a total area of about 490.5 square Km and is the same area the 2 other blocks are located.

Adapted from Reuters 

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