Tancoal Energy Limited, producers of coal, will break even not later than the end of the year, the company chief executive officer, Mr James Shedd has said.
In an interview, Mr Shedd said this will be achieved following high demands of coal in recent months.
“We will soon break even because our coal business is booming. The remaining challenge is poor roads condition from Ngaka to Kitai in Ruvuma region,” said Mr Shedd.
He said soon after breaking even, the next plan will be achieving continuous high level profit margin.
Owned by the Intra Energy Corporation, the National Development Corporation and Intra Energy Corporation, Tancoal is also listed at Australian Stock Exchange.
The government of Tanzania through NDC owns 30 per cent of company shares, while the latter partners own the remaining 70 per cent of shares.
The legal counsel of Tancoal Energy, Mr Arafat Sinare said this year alone, the company paid Sh5.9 billion in taxes to the Tanzania Revenue Authority (TRA).
This includes Pay As You Earn, corporate tax, indirect taxes such VAT paid by their partners and service providers and other fees with exception of income tax, according to the legal counsel.
Tancoal was established in the country in 2008 and started producing coal from Ngaka mines in 2011 with efficient business record of meeting domestic and exports demands.
According to the April report of Intra Energy, the company recorded sales of 46,269 tonnes of coal in April 2018, higher than 37,302 tonnes produced in April 2017.
(By Ludger Kasumuni)
