Friday, 19 June 2015

Liganga iron mine, steel plants to earn govt 252.4bn/- annually

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INNOCENT-THE BLOGGER-BOY

The Deputy Minister for Energy and Mineral Dr Charles Kitwanga
 Royalties and various taxes collected from the Mchuchuma and Liganga projects will increase government revenue by 252.4bn/- annually for the 50 to 100 years, the National Assembly was informed yesterday in the capital Dodoma.

 
The Deputy Minister for Energy and Mineral Dr Charles Kitwanga told the House that the projects will benefit the locals providing some 3049 jobs along with other indirect benefits.
 
“The projects are estimated to continue for 50 years in Liganga and 100 years in Mchuchuma,” he detailed.
 
He noted that because the projects will last for so many years, the government is working on how to accrue benefits for future generations to match the anticipated increase in cost of living.
 
The minister was responding to a supplementary question by special seat MP Rita Kabati who had wanted to know which stages the government has reached in utilising the resources available at Ludewa.
 
Responding, Dr Kitwanga said the government has issued a licence No SML 533/2014 for extracting iron at Liganga to Tanzania China International Mineral Resource Limited (TCIMRL), the licence will expire October 2029.
 
TCIMRL is a joint venture company with the National Development Cooperation (NDC) owning 20 per cent and Sichuan Hongda (group) Company Limited amassing the lion share of 80 per cent of all stocks.
 
“The TCIMRL company continues with preparations to open an iron mine in Liganga together with the establishment of a steel plant and coal mine at Mchuchuma” the deputy minister explain
He elaborated that the same iron resources have been also discovered in Morogoro and Itewe in Mbeya, but the Liganga deposits offer the greatest investment opportunity.
 
The Liganga iron ore mine and Iron and Steel Complex are expected to produce one million metric tonnes of iron and steel products, vanadium pentoxide and titanium dioxide.
 
NDC on behalf of the government in September 2011 signed a Joint Venture Agreement with Sichuan Hongda Group limited to implement the project.
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