Tanzania’s economy is set to receive a boost from the mining sector following the signing of a $77 million (approximately 206.4 billion Tanzanian Shillings) agreement to develop the Maganga Matitu Iron Ore Project in Liganga, Ludewa District, Njombe Region.
The contract, signed on Saturday between the government’s National Development Corporation (NDC) and the Chinese firm Fujian Hexingwang Industry Tanzania Co Ltd, marks a pivotal step in the country’s industrial development.
Deputy Prime Minister and Minister for Energy, Dr. Doto Biteko, who witnessed the signing, emphasized the project’s potential to produce at least 1 million tonnes of iron annually.
Dr. Biteko highlighted the economic benefits expected from the project, stating, “The government is doing everything in its power to ensure available natural resources benefit all Tanzanians.”
He credited President Samia’s support for private sector engagement in economic building, noting that such investments are crucial for job creation and revenue increase.
The government has already compensated residents with 15 billion Tanzanian Shillings to facilitate the implementation of the Liganga and Mchuchuma projects, the largest of their kind in Africa.
The deputy premier also applauded the Ministry of Industry and Trade for their role in finalizing the deal and assured investors of a profitable business environment due to the country’s favorable investment climate.
In addition to the economic growth, the project is expected to enhance local production capabilities. Deputy Minister for Industry and Trade, Mr. Exaud Kigahe, mentioned that President Samia had previously compensated citizens for relocation, which cleared the way for the project’s implementation.
“The assessment conducted in 2020 revealed 101 million tonnes of iron sediment in the Maganga Matitu project,” he said.
This local production will not only increase the value chain and promote the industrial economy but also save foreign currency by reducing iron imports.
The government will retain a 36% stake in the mine, with Fujian holding the remaining 64%.
This project is a key component of the Mtwara Development Corridor and is expected to catalyze further industrial advancements in Tanzania.
