Chinese firm, invest $3 million in the Mchuchuma coal and Liganga iron ore production projects in Southern Tanzania according to The East African.
This is the first major mining investment by Sichuan Hongda Corporation Ltd in Tanzania, after it was selected out of 48 international companies that bid to develop the two projects.
Chrisant Mzindakaya, the chairman of the board of the National Development Corporation said that the Mchuchuma coal project, which is expected to produce 600 Megawatts of electricity will supplement the hydropower sources in Tanzania.
“The project will also necessitate the strengthening and building of new power transmission lines,” said Dr Mzindakaya.
The country is notorious for chronic power rationing, largely due to overdependence on hydro sources.
Director of Heavy Industry in the Ministry of Industries, Trade and Marketing, Alley Mwakibolwa, said the Mchuchuma mining area has an estimated 540 million tonnes of coal deposits, which is enough to produce electricity for over 100 years.
“Once the Mchuchuma project is complete, the power rationing problem will be solved,” he said.
Mr Mwakibolwa added that the 600MW of power expected will attract investment in other sectors as well.