Govt clears Liganga, Mchuchuma deal

DODOMA: THE government has finalised negotiations with investor Shudao Investment Group Company Limited (SDIG) for the implementation of the long-awaited Liganga Iron Ore and Mchuchuma Coal projects, marking a major milestone for the strategic industrial venture that has remained dormant for many years.

The agreements reached cover several key components of the projects, including the shareholding and financing structure, investment capital requirements, as well as the framework for joint management and operations.

This was revealed yesterday in the National Assembly by Minister for Industry and Trade, Ms Judith Kapinga, while presenting the ministry’s 137.8bn/- budget estimates for the 2026/27 financial year.

Ms Kapinga said the government has made significant progress in reviving the multi-billion-shilling projects, which are expected to play a crucial role in accelerating industrial development and strengthening the country’s mining and manufacturing sectors.

According to the minister, the completion of negotiations demonstrates the government’s commitment to ensuring implementation of strategic projects aimed at boosting economic growth, creating employment opportunities and enhancing value addition in the country’s natural resources sector.

She said the Liganga and Mchuchuma projects are among the key national development initiatives expected to contribute significantly to Tanzania’s industrial economy once fully operational.

The minister noted that the projects will also support the government’s broader agenda of promoting local industries by ensuring availability of raw materials, including iron and coal, required for industrial production.

Ms Kapinga further explained that the agreements reached between the government and the investor establish a clear operational framework that will guide implementation of the projects and future cooperation between the two parties.

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She said the government has continued to prioritise strategic investments capable of stimulating industrial productivity and increasing the country’s competitiveness in regional and international markets.

The Liganga Iron Ore and Mchuchuma Coal projects, located in Njombe Region, are considered among Tanzania’s most strategic mining and industrial development projects due to their vast mineral reserves and potential contribution to economic transformation.

For many years, implementation of the projects faced various challenges, resulting in delays despite their importance to the country’s industrialisation ambitions.

However, the latest development signals renewed momentum towards actual execution of the projects following successful negotiations between the government and SDIG.

Ms Kapinga said the government remains optimistic that implementation of the projects will open up new opportunities for investment, technology transfer and employment, particularly for Tanzanians living in surrounding areas.

She added that the ministry will continue overseeing implementation of strategic industrial projects to ensure they align with national development priorities and contribute effectively to the country’s long-term economic growth.

The minister also reaffirmed the government’s determination to create a favourable investment environment that encourages both local and foreign investors to participate in strategic sectors of the economy.

She said successful implementation of the Liganga and Mchuchuma projects is expected to strengthen Tanzania’s industrial base and support the country’s vision of achieving sustainable industrial transformation.