NDC inks pact with five companies to extract coal at Mchuchuma

DAR ES SALAAM: THE government through the National Development Corporation (NDC) has signed a five-year agreement with five local mining companies to extract coal from the Mchuchuma Mine in an effort to create more job opportunities in the country.

The five companies include Sheby Mix Investment Ltd, Nipo Engineering Company limited, Chusa Mining Company Limited, Kindaini Company limited and Cleveland Mine and Service Company Limited which are expected to start extraction six months after the signing of the agreement, recently in Dar es Salaam.

The agreement among others requires each company to extract 30,000 tonnes of coals per month which is equivalent to 150,000 tonnes per month.

Speaking after the signing which was also witnessed by the Minister for Industry and Trade, Dr Ashatu Kijaji, NDC’s Managing Director, Dr Nicolaus Shombe said the purpose for allowing the five companies among others who applied for the work is to create numerous social-economic opportunities to the people of Ludewa District.

“We had 25 companies which applied for the opportunity but only these five managed to fulfill our requirements… we have decided to give them a chance which will also benefit the citizens both socially and economically,” said Dr Shombe.

He said 500 jobs will be created directly from the companies while at least 2000 jobs are expected to be produced from places near the mining sector.

Given her remarks during the signing event, Dr Kijaji who was a guest of honour commended the motive made by the government where she also challenged the five companies to adhere to professionalism during the entire period of their work.

She said the government’s intention is to see the public benefitting from the available resources, thus due to the demand of the product (coals), the companies will produce more coals and the government could use the benefit through the tax which directly will reach the citizens.

“As you have signed the contracts, I urge you to adhere to professionalism during the execution of the work,” said Dr Kijaji.

Cleveland Mine and Service Company Limited, one of the signed companies Managing Director Mr Ndaisaba Ruhoro, thanked the NDC for the opportunity promised to work efficiently and effectively.

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