Tanzania is planning to start local commercial production of iron ore and steel by the construction of related smelting plants. The National Development Corporation (NDC) has said that the country is also expecting to produce 1.1 million metric tones per year, with the first batch export expected in four years’ time.
Construction of the iron ore mining and smelting plants at Liganga is expected to start off early next year, while they are expected to give off something from 2018. China International Mineral Resources Limited (TCIMRL) and NDC have entered into a joint venture to see through the construction of the plants.
Local production is expected to cut down the amount of iron ore and steel imported into Tanzania to support the construction of bridges and highrise buildings, according to Mlingi Mkucha, the acting NDC Managing Director. The project is also expected to help the country realise its 2025 vision and move to a middle-income economy.
The country is targeting at constructing an iron and steel metallurgical complex in order to achieve the targets. The Minister for Energy and Minerals Prof Sospeter Muhongo has received two licenses for the Liganga Iron Ore and Mchuchuma Coal Mine.
NDC is also planning additional construction projects, including 600-MW electricity, coal mine construction and iron ore mine construction. To support the iron production complex, the company is also planning on the installation of a transmission line from Mchuchuma to Liganga. The mines will also be served by a 75-kilometre tarmac road to be constructed too.
Sichuan Hongda Group and NDC have created a Tanzania China International Mineral Resources Limited (TCIMRL) through a joint venture partnership entered in 2011. Together, they intend to invest US$1.3 billion in building 600 MW thermal power station, and coal mining project to see the production of 3.0 million tonnes a year of coal; among other projects.