Tanzania’s National Development Corporation (NDC) has signed a US$77 million contract with Fujian Hexingwang Industry Tanzania to facilitate iron ore mining.
- The project will be located in Ludewa District, Njombe region, with domestic steel production set to commence in the next three years.
- TSh4.2 billion has been set aside to compensate the over 300 residents that reside in the target area.
- Tanzania currently spends an average of US$1.22 billion for annual steel importation, making it the second-largest foreign exchange expenditure after oil.
According to NDC Managing Director, Dr Nicolous Shombe, the United Republic of Tanzania will own 36% of the project while the investors will hold 64%.
Industry and Trade Deputy Minister, Ms Exaud Kigahe says a 2020 verification of the project revealed the presence of 101 million tonnes of iron ore.
Tanzania is the ninth-largest diamond producer in Africa and boasts 13% of the world’s graphite deposits. Its gold production amounts to 55,603 kg a year.
Mining activities contribute up to 7% to the country’s GDP, which the government would like to raise to 10% by 2025 as part of its economic transformation plan, called Development Vision 2025.
In the year to August 2023, gold exports totalled US$2.95 billion up from US$2.75 billion in the year to August 2022, representing about 39% of the value of the country’s goods exported. It was primarily generated by large-scale mines.
Tanzania’s coal exports for the same period were US$227 million up from US$82 million the previous year. Analysts estimate that the mining sector could reach US$6.6 billion in value by 2027.
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