Once the commercial production takes off, NDC said Tanzania will be one of the top four iron producers in Africa. 

 

This will be the basis for putting up an iron and steel metallurgical complex which in turn will create hundreds of jobs.

 

Mlingi Mkucha, the  acting NDC Managing Director told East African Business Week in Dar es Salaam last week when he received two mining licenses for processing plants. They hope to start early next year.

 

The two licenses for Liganga Iron Ore and Mchuchuma Coal Mine were presented by the Minister for Energy and Minerals, Prof Sospeter Muhongo.  

 

“The construction of the iron ore mining and iron smelting plants at Liganga will start early next year and production is scheduled to start in 2018,” Mkucha said.

 

The construction is a joint venture between China International Mineral Resources Limited (TCIMRL) and NDC.  About  $3 billion will be spent on both projects.

 

Mkucha said “As we will be producing 1.1 million metric tonnes a year, Tanzania will save a lot of revenue as the importation of iron will be reduced to pave way for local production.”

 

He said considerable iron and steel are imported for the construction of bridges and highrise buildings. These imports can be steadily reduced once local production gets underway.

 

He said iron production will lift the country to the middle income category and make realization of the 2025 Vision very possible.

 

Few countries can take off without an iron and steel industry. These are designated as heavy industries and are pillars on which the United States Europe and Asian managed to record rapid growth figures.

 

NDC will embark on five projects which are coal mine, iron ore, production of 600-MW electricity, construction of a steel complex and installation of a transmission line from Mchuchuma to Liganga for the iron production complex.

 

So as to ease movement of materials for construction, Mkucha said they will first construct a 75 kilometre tarmac road heading to the mines.

 

The Liganga Iron Ore project is the biggest in Tanzania. The project is being developed by TCIMRL as an integrated project with Mchuchuma. 

 

The Liganga iron ore mine and Iron and Steel Complex is expected to produce one million metric tonnes of iron and steel products, vanadium pentoxide and titanium dioxide.

 

NDC on behalf of the government in September 2011 signed a Joint Venture Agreement with Sichuan Hongda Group limited to implement the project.

 

 They created Tanzania China International Mineral Resources Limited (TCIMRL). TCIMRL is keen on investing $1.3 billion.

 

The project intends to establish 3.0 million tonnes a year of coal, build a 600 MW thermal power station; and construct 220 Kv transmission line between Mchuchuma and Liganga.

 

Another 400 Kv transmission line will come up between Mchuchuma and Mufindi to connect to the national grid.

 

Prof Muhongo wants a quick start of the projects so that the intended goals are met as previously agreed.

 

Iron ore is a vital resource for steel manufacturing industries and other ferrous based industries.

 

The explorations carried at the Mchuchuma Liganga projects have already confirmed that the coal and iron ore deposits will be mined for more than 100 years.

 

According to the study, more than 364 million tonnes of coal and 219 million tonnes of iron ore deposits have been confirmed at Mchuchuma Liganga projects.

 

It is estimated that three million tons of coal will be mined annually and it will take more than 100 years and 2.9 million iron ore deposits every year for not less than 90 years.

Source : www.busiweek.com