The Ministry of Energy in Kenya has announced that it has prequalified three firms to advance to the Request for Proposals stage (RFP) for coal mining at the Mui Coal Mines in Kitui. The stage is the final in the procurement process and RPF will be awarded to the firms in December 2, 2014.
The three firms that will progress to the next stage include the consortium of TransCentury Investments; Liketh Investments Kenya Limited and HCIG Energy Investments Company Limited; and the consortium of China Northeast Electric Power Engineering Corporation (NEPC); and China Coal Technology and Engineering Group (CCTEG).
The Mui basin has the capacity to produce 5,000MW of electricity and its coal deposit is estimated at one billion tonnes valued at US$ 75 bn.
The Mui Basin (with area of 500km2) is made up of the Zombe-Kabati block (121.5 km2) and the Mutitu-Itiko block (117.5 km2) – Block A and B respectively, but there is also block C (Kateiko–Yoonye – 131.5 km2) and block D (Karunga–Isekele – 120 km2) at the basin.
Apart from cheap electricity generation from coal to achieve vision 2030, Kenya has also invested in wind power projects and dams. Coal power generation from Mbui mine to be exploited by the three firms will also help cement firms hoping to set up manufacturing units in the region, including Dangote. The latter has also announced plans to invest in coal mining in Tanzania to provide power for its cement plant in the same country.