Australia-based Intra Energy Corporation (IEC) is planning to invest $116m for the development of the Mbalawala coal mine in Tanzania.
The project is expected to increase the coal output to 500,000tpa by 2013 with a maximum output capacity of 5Mtpa, reports Reuters.
Tancoal Energy, a subsidiary of IEC, has spent $23m for initial development costs and exploration of the mine.
IEC executive chairman Graeme Robertson said that the firm will spend an additional $93m on the operations to increase the production rate to 5Mtpa.
Under the first stage of the development, the mine is expected to produce 10,000t a month, increasing to 30,000t a month in 2012, and gradually reaching 500,000t by 2013.