DAR ES SALAAM, Aug 4 (NNN-DAILYNEWS) — TANZANIA is set to continue reaping big in the mining sector after signing 77milion US dollar (about 206.4bn/-) agreement to develop Maganga Matitu Iron ore project at Liganga in Ludewa District, Njombe Region.
The contract was signed on Saturday between the government through the National Development Corporation (NDC) and the Chinese company, Fujian Hexingwang Industry Tanzania Co Ltd.
The signing ceremony was witnessed by Deputy Prime Minister and Minister for Energy, Dr Doto Biteko.
The project targets to produce at least 1.0 million tonnes annually.
Speaking shortly after the signing, Dr Biteko said the project is expected to boost the country’s economic growth through industrial development.
He said the government is doing everything in its power to ensure available natural resources benefit all Tanzanians.
“President Samia believes in the engagement of private sector in building the country’s economy, it is through investments the government is capable of creating job opportunities and increase revenues,” Dr Biteko said.
He said the government has already paid 15bn/- in compensation to residents to pave the way for the implementation of Liganga and Mchuchuma project, the biggest in Africa.
The deputy Premier applauded the Ministry of Industry and Trade for ensuring the deal is closed.
According to Dr Biteko, the implementation of the project will enable the country to process iron materials within the country and reduce importation.
He further assured the investors of profitable business saying the country has a friendly investing climate.
In a related development, he directed the Tanzania National Electricity Supply Corporation (TANESCO) and the Rural Electricity Agency (REA) to conduct a study and submit proposals on how to electrify 10 villages located on the shore of Lake Nyasa, in Ludewa District.
On his part, Deputy Minister for Industry and Trade, Exaud Kigahe said that last year President Samia paid compensation to citizens who relocated to allow the implementation of the project in 2020.
“The assessment of sediment information conducted in 2020 in this Maganga Matitu project has shown the presence of 101 million tonnes of iron sediment,” he added.
He said the execution of the project will not only increase the value chain that will promote the industrial economy but also enable the government to save foreign currency that would have been used for importing iron.
The NDC Director General, Dr Nicholas Shombe said the government will retain a 36 per cent stake at the mine and the remaining 64 per cent by Fujian.
The Liganga Iron Ore project is among the anchor projects in the Mtwara Development Corridor. Maganga Matitu is one of the five hills of the Liganga Iron Ore Project set aside by the government for a local programme to produce sponge iron as raw material for steel industries. — NNN-DAILYNEWS
