Tanzania Electric Supply Company Limited (Tanesco) and Geita Gold Mine (GGM) have signed an electricity purchase agreement that will generate Tsh5 billion in revenue per month for the power utility company.
GGM currently generates its electricity with generators, spending at least $3 million (about Tsh6.9 billion) per month.
Mr Maharage Chande, Managing Director of Tanesco, stated yesterday during the agreement signing ceremony that once completed, the project will not only increase revenue for the power utility firm but will also reduce operational costs for GGM.
With the availability of electricity, the mine will be able to reduce environmental pollution while also increasing operational efficiency.
Mr Simon Shayo, GGM Vice President for Tanzania and Ghana, stated that the agreement would relieve the company of the burden of using fuel to generate electricity. For the past two decades, the company has purchased fuel to generate its electricity.