Govt to launch Mchuchuma coal, Liganga iron ore project in 2025/26

DODOMA: THE government will in the 2025/26 fiscal year kick off the implementation of a grand project of the Mchuchuma Coal and Liganga Iron ore which has stalled for many years.

The project is considered to be of highest interests for the country’s economic endeavours as the area in Ludewa District is said to have valuable deposits of minerals that are in high demand globally.

Deputy Minister for Trade and Industries, Exaud Kigahe told the House yesterday that the project will be implemented by the Chinese based company, Shudao Group.

He made the revelation in response to the main question posed by Ludewa Member of Parliament, Joseph Kamonga (CCM).

“After paying compensation to the Mchuchuma and Liganga area, I want to know when the project will kick off,” said Mr Kamonga.

According to the Deputy Minister, the government had already finished clearing compensations to the area residents on the strategic and flagship project.

He noted that Sichuan Company Hongda (Group) Company Limited, an investor, informed the government that it was at the final stages to sell shares to Shudao Group of China which will implement the project.

“Beginning this month, the company will accomplish its procedures for transfer of shares, a process which will take about three months prior to the implementation of the project,” said Mr Kigahe.

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In 1952, a Canadian company did an airborne survey, magnetic survey and from 1956 to 1957, major Austrian companies came in.

Then in 2011, the National Development Corporation (NDC) came in by signing a contract with a Chinese company.

The NDC inked a $3 billion deal with China’s Sichuan Hongda Co. Ltd to mine coal and generate power in Mchuchuma.

The Liganga mineral deposit stands at 129 million tonnes while Mchuchuma has a deposit of 422 million tonnes of coal.

The biggest deposit of coal is in Australia with 51 billion tonnes deposit, followed by Brazil with 34 billion tonnes and China deposits of 20 billion tonnes.

The Mchuchuma Project area covers about 141 square kilometres and the Liganga Steel Complex covers 179 Square Kilometres.

In addition to iron and coal, the Liganga mine is rich in Vanadium Pentoxide, Titanium, Ammonium Sulphate and Sulphur, which are said to be more valuable than the iron ore itself.

The Liganga project is expected to be the second largest iron-to-steel project in Africa after that of South Africa.