DAR ES SALAAM: THE National Development Corporation (NDC) will sign a mining agreement with the Chinese firm Fujian Xho on Friday for the development of the Maganga Matitu iron ore project.
The Maganga Matitu iron ore project at Liganga in Ludewa District in Njombe targets to produce almost 1.0 million tonnes annually.
The NDC Director General, Dr Nicholas Shombe, told reporters in Dar es Salaam, yesterday that to develop the mine the investors committed 77.4 million US dollars and will take 18 months.
“The preparations of the Maganga Matitu project signing are ready and expected to be signed this Friday,” said Dr Shombe, when Minister for Industry and Trade Dr Selemani Jafo paid a familiarisation visit to the NDC yesterday.
The government, according to Dr Shombe, will retain a 36 per cent stake at the mine and the remaining 64 per cent by Fujian Xho.
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The iron ore mined at Maganga Matitu will be processed locally at the area.
The exercise begins next January will see the government spending some 4.2bn/- to compensate 385 people affected by the project.
Dr Jafo told NDC to make sure the project is completed in time to enable industries to source raw material locally and in turn reduce import dependence on iron products.
“We need to produce high quality iron materials…to cut import dependence,” he said.
A majority of domestic factories producing round iron bars are relying on scrap metals as their primary raw materials, compromising the quality of the finished products.
The minister also advised the NDC to secure capital through the country’s capital markets for projects that are pending due to a lack of funds.
A fortnight ago, Dr Jafo tasked institutions under his purview, including the NDC, to provide him with a report on the progress of various development projects they are overseeing.
And, also urged the NDC to fast-track the implementation of the Mchuchuma Coal and Liganga Iron Ore projects, given their valuable deposits of minerals that are in high demand globally.