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Govt shortlists three consortiums to mine coal deposits

26 November 2014, 09:28

Nairobi -  The government on Tuesday said it has shortlisted three consortiums to mine coal deposits located in the south eastern part of the country.

The energy ministry said that the first consortium includes Transcentury Investments Ltd, Continental Coal and Power machines while the second consortium includes Liketh Investments Kenyan and HCIG Energy Investments Company Ltd. The third consortium consists of China Northeast Electric Power Engineering Corporation (NEPC) and China Coal Technology and Engineering Group (CCTEG).

"The three firms have been pre-qualified to submit technical and financial proposals for the each of the two coal blocks," the ministry said in a statement issued in Nairobi.

Also read: Underage miners warned they risk arrest

The winning consortium will also be required to set up a 960 Megawatt coal electricity generating plant within 36 months near the Mui basin where huge deposits of coal have been found.

Kenya estimates coal deposits in the Mui basin to be valued at over 40 billion U.S. dollars, and could provide up to 3,500 megawatts of electricity.

The government considers coal a cheap source of energy and if found to be commercially viable, some of the coal will be used in the cement and steel industries, which are estimated to be spending at least 47 million dollars annually in coal imports.

Apart from Mui, the government is exploring for coal in Taru Basin in Kwale and Kilifi counties and plans to extend the activities.

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- Xinhua


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