The growing need for power, and the lack of a reliable supply, is a constant lament for many in Africa.
The International Monetary Fund listed five East African countries – Uganda, Rwanda, Mozambique, Tanzania and Malawi – as among the world’s fastest-growing countries in 2005-2010.
The 2013 African Economic Outlook Report expects most countries in the region to continue growing at rates of up to 7%. But one of the biggest constraints to this growth is a reliable base load power supply.
The option presenting itself as the quickest and cheapest base load solution is coal.
Coal is arguably the most important primary source of energy in the global energy mix, according to Reportbuyer.com’s Production and Investment Forecast in Southern Africa’s Coal Mining Industry, released late last year.
It said coal’s wide availability meant the resource was not subject to geopolitical tensions and its relatively lower price compared to oil and gas would lead to increased consumption of coal for the foreseeable future.
As governments in the region look to the future, 19 Australian companies focused on coal and consumable fuels have looked to Africa, yet only a few have earned producer status to date.
At the time of going to press, ASX-listed Universal Coal was making the transition to producer with maiden production slated for its Kangala coal mine in South Africa.
Fellow Australians Continental Coal and Coal of Africa each have three coal mines in South Africa, while Intra Energy is in production in Tanzania and Malawi, and is planning to build coal-fired power stations in both countries.
The World Bank has said just 8% of Malawi’s population has electricity and there is already a generation shortfall for the country’s 300MW demand.
