Part of the feasibility studies being conducted for Tanzania’s Mchuchuma-Liganga iron ore and coal project has been completed. The final assessment of the technology for coking coal processing is expected to be completed on September 15, 2026.
Dr. Nicolaus Shombe, Director General of the National Development Corporation (NDC), said that following the completion of the feasibility studies, the implementation agreements between the government and the investor will be finalized, allowing the project to move into the construction phase.
Final Stage of Feasibility Studies
Shombe said the ongoing studies cover coal mining, power generation, iron ore and steel production, as well as the necessary infrastructure. He added that the final assessment is particularly focused on technologies that can create added value in steel production using coking coal.
The NDC Director General stated that the project will move into the implementation phase once the feasibility studies are completed and the agreements are finalized. He added that a major groundbreaking ceremony is expected to be held before the end of the year.
Production Capacity
Under the project, Mchuchuma is expected to produce approximately 3 million tonnes of coal annually and host a 600 MW power plant.
At Liganga, the project is expected to produce approximately 2.9 million tonnes of iron ore annually, while the integrated iron and steel complex is planned to produce around 1.1 million tonnes of finished steel products per year.
428 Million Tonnes of Coal and 126 Million Tonnes of Iron Ore
According to previous NDC studies, the Mchuchuma area contains approximately 428 million tonnes of coal, while Liganga has more than 126 million tonnes of iron ore reserves.
The completion of the project is expected to create more than 6,600 direct jobs and approximately 26,000 indirect jobs. Shombe said the implementation agreements are expected to be signed this year and that the project will be advanced as one of Tanzania’s strategic industrial programs under the country’s Vision 2050 framework.
Project Developed with SDIG
The Mchuchuma-Liganga project is being developed by the Tanzanian government, through the NDC, in partnership with Shudao Investment Group Company Limited (SDIG). SDIG previously acquired the project’s stake from Sichuan Hongda Group.
Located in the Ludewa District of Njombe Region, the project has a total estimated investment value of USD3 billion.
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