Powering progress: how energy and mining drive Tanzania's future

Tanzania's journey forward is deeply connected to two powerful sectors: energy and its burgeoning mining industry. Far from being separate entities, these two pillars of development share a dynamic relationship that presents immense opportunities for sustainable growth. And at Wärtsilä, we're proud to be at the forefront, helping to build this crucial connection.

Mining's big energy needs (and how we meet them)

Mining operations, by their very nature, are energy-intensive. From extraction and processing to transportation, reliable and affordable power is crucial for operational efficiency and profitability.

This is especially true for remote mines, which often lack access to a stable national grid and traditionally rely on expensive, high-emission diesel. The Tanzanian mining sector consumed about 15% of the nation's total energy as of 2020, with a significant proportion from non-renewable sources. However, this energy demand also presents a significant opportunity for embracing more sustainable solutions.

This energy demand opens doors for smarter energy solutions. At Wärtsilä, we understand these demands intimately. Our flexible and quick-starting gas engine technology is a prime example. We supplied a 40 MW power plant to Geita Gold Mining Limited in Tanzania, showcasing our ability to provide reliable, off-grid power solutions for continuous operations in tough environments. This plant uses Wärtsilä 32 engines, known for their efficiency and suitability for high-elevation sites.

Here's why gas engines are a game-changer for remote mines and renewable integration:

• Best for renewables integration: Gas engines are incredibly agile. They can ramp up to full power in minutes – Wärtsilä engines can go from cold start to full power in less than 2 minutes. This fast response makes them perfect for balancing the stop-and-go nature of renewables like solar and wind, which are abundant in Tanzania. When the sun isn't shining or the wind isn't blowing, gas engines seamlessly kick in, ensuring uninterrupted power without wasting precious renewable energy. They don't compete with renewables; they complete the puzzle.
• Empowering remote mines: For mines located far from the main grid, gas engines offer a dependable and efficient off-grid solution. They significantly reduce reliance on costly and hard-to-transport diesel, improving energy security and cutting operational expenses. This means remote operations can thrive, contributing to economic development even in isolated regions.
• Smart control with Wärtsilä GEMS: Our GEMS Digital Energy Platform is designed to seamlessly integrate and optimise all energy assets. It uses smart technology to ensure maximum efficiency and cost savings for mines, contributing to the Tanzanian government's goal to increase the share of renewable energy in the generation mix from around 61.8% to 75% by 2030.

Mining's pivotal role in Tanzania's energy infrastructure

The impact isn't just one-way. The mining sector is poised to be a powerful catalyst for the development of Tanzania's broader energy infrastructure:

• Driving infrastructure development: Mining projects often require building new power plants, transmission lines, and substations. Our experience in delivering complete power solutions means this new infrastructure, initially built for mines, can then serve surrounding communities and other industries. This helps the whole economy grow. For instance, mining revenue has supported major projects like the Standard Gauge Railway and is attracting significant Foreign Direct Investment (FDI) into critical minerals essential for the global energy transition.
• Funding energy ambitions: The significant money earned from mining can be smartly invested into vital energy projects nationwide. The mining sector's contribution to Tanzania's GDP has steadily increased, reaching an anticipated 9.0% in 2023/2024, with a target of 10% by 2025. This growth boosts government revenue, enabling public investment in essential infrastructure like roads and ports, and ultimately supporting a stronger, more accessible national energy supply. Through our Decarbonisation Agreements, we work with customers to optimise their energy mix, cut emissions, and achieve big cost savings, aligning with Tanzania's drive for sustainable development.

By fostering closer collaboration between energy providers like Wärtsilä, mining companies, government, and investors, Tanzania can unlock incredible value. It's about using the energy needs of mining to create lasting power solutions, and using mining profits to build a strong, inclusive energy future for everyone in Tanzania.