Govt, investors deliberate start of Mchuchuma and Liganga projects

28May 2020
Henry Mwangonde
The Guardian
Govt, investors deliberate start of Mchuchuma and Liganga projects

​​​​​​​THE government is in talks with investors for the start of the Mchuchuma and Liganga projects following the amendment of laws governing natural resources in the country.

Deogratius Francis

This was said by the ministry of Trade, and Industries in a written response to a question asked by the Ludewa MP, Deogratius Francis (CCM) who had wanted to know when the projects would commence.

The ministry said the government is reviewing the contracts for the Mchuchuma and Liganga projects to align with the amended natural wealth and resources laws.

In the process, all strategic projects in the extractive sector including those in the mining, gas and oil are undergoing reviews.

The Liganga iron ore mine and iron steel complex, according to the statement is expected to produce one metric tonnes per year of iron and steel products, vanadium pentoxide and titanium dioxide.

The Mchuchuma projects include the construction of a 600 MW coal-fired power station, of which 250 MW will be used by the iron plant, while the remaining 350 MW will feed the national grid.

“The Mchuchuma and Liganga projects in Ludewa district, Njombe region is aimed at producing iron and coal,” said the statement.

The minister in the statement said the projects need a lot of money despite having signed a contract with the investor. It also needs modern technology in effort to compete in the global market.

The project, according the government has been delayed by lack of capital and technology to drill iron ore.