Tancoal Energy has received a mining licence for the initial mining area of the Mbalawala mine at the Ngaka Coalfields in south-west Tanzania.

With the receipt of the mining licence, coal mining operations will start this month, when the land compensation has been finalised.

Mining operations will commence at the production rate of 10,000t a month to meet sales contracts and will be increased as additional sales contracts are concluded.

Intra Energy holds a 70% interest in Tancoal Energy and the remaining 30% is held by the National Development Corporation of Tanzania.