The national grid connection has raised the hope of graphite mine, closed since 1999 in Ancuabe, as the output did not cover the costs of production, especially electricity cost.
Medium voltage line of 42 km was built from Metoro to Ancuabe and four kilometres of low voltage lines were built within Ancuabe itself. The company said that there is an immediate potential of 130 clients in the Ancuabe district capital, out of which 30 have already been connected including the district hospital, and all institutions of the district government.
The Ancuabe connection to national grid, is part of the second phase of a Cabo Delgado electrification project, which has already brought Cahora Bassa power to Montepuez and Chiure districts. The work is continuing on sub-stations in Montepuez and in Namapa.
During 1990s, the power for Ancuabe came from diesel-powered generators. The mine relied on enormous quantities of imported diesel, and the rising cost of this fuel dealt graphite production in Ancuabe a fatal blow.
The hydro-electric power from Cahora Bassa is not costly, and the government expects that the Ancuabe mine can be back in production, under new management, in 2009. Timcal Graphite and Carbon Inc. has been awarded the contract to operate the mine, following a tender launched by the government in May 2008.
