Tanzania Projected to Become Leading Iron Producer in Africa

September 22, 2013 8:38 am1 comment by:

Tanzania is projected, to become one of the major producers of iron in Africa when it starts mining an estimated one million tons by the year 2018/19.

The mining will be spearheaded by Tanzania China Mineral Resource Limited –TCIMRL, a joint company between Tanzania National Development Company and Sichuan Hongda Group-SHG of China.

Pre-feasibility study conducted by TCIMRL in preparation, to start a mine and an iron factory in Liganga, Ludewa district, revealed 219 million tons of iron deposits that will last for up to 70 years through open cast mining. The area to be covered is 156 square kilometer.

Tanzania is expected to become the 4th biggest producer of iron in Africa after South Africa that produces 8.5 million tons of iron per year.

Other leading iron ore producing countries include Egypt 8.0 tones and Libya 2.0.  it is estimated that 1.55 billion tons of Iron is produced globally per year.

The biggest producer of iron ore is China, at 711 million tons per year, which in turn adds up to 46 percent of the world production.

A side from Iron, other mineral expected to be produced from the proposed mine include 175,400 tones of per year and 5,000 ton of Vanadium per year.

This is one of the two projects contained in an agreement between NDC and SHG signed which was signed on 21st September 2011.

The agreement was reached for the establishment of coal mine and the construction of 600 megawatt power generation site in Mchuchuma as well as installation of 220 kilometer of electricity lines.

The power line will run from Mchuchuma to Liganga.

According to the report by TCIMRL, estimated deposits of coal covering 30, square kilometers can be mined for over 100 years.

A further 110 square kilometer, area is still under investigation, to ascertain if there is more deposits of coal.

The two projects estimated to cost $3 billion will bring in for Tanzania about $1.7 billion per year when full production starts in 2018/19.

The proceeds will be realized from generation of 600 megawatts, income from coal , Iron, Titanium and Vanadium.

The projects will also provide direct employment to 6,000 Tanzanians and 35,000 indirect employments.

Both projects are in phase that involved pre-feasibility study and preparation, in May the project will move to construction of the mines and factory in areas of Mchuchuma na Liganga.

The project is going on concurrently with another project in Ludewa signed in September 2, 2009 by M.M Steel Resources Public Limited Company-MMSR PLC.

It will cost $ 150 million and expected to bring in about $183 million per year. The factory will produce raw iron material for companies within and outside Tanzania.

It is hoped the project will fight against vandalism of the current infrastructure for scrap.

 

 

1 Comment

  • This article is totally inaccurate. There is confusion between Iron Ore, a raw material for producing Steel and data on the finished products. Mr Elunya should start from the beginning.

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