The Liganga iron ore project is one of the flagship projects of the Mtwara development corridor. As a reminder, the Liganga mine is a major iron ore project located in the southern highlands of Tanzania, in the Ludewa district of the Njombe region. Maganga Matitu is one of the five hills of the Liganga iron ore project reserved by the government for a local program to produce sponge iron as a raw material for the steel industries.
The project, which is estimated to cost US$77 million, aims to produce pre-reduced iron ore to be used as raw material for the steel industry. Deputy Prime Minister and Minister of Energy Doto Biteko witnessed the signing of the agreement in the port city of Dar es Salaam, Tanzania’s economic capital. “President Samia believes in the private sector’s involvement in building the country’s economy, it is through investment that the government is able to create job opportunities and increase income,” Dr Biteko said. He added that the government has already paid 15 billion Tanzanian shilling in compensation to residents to pave the way for the implementation of the Liganga project. “This project would help boost the country’s economic growth through industrial development,” said Energy Minister Doto Biteko. National Development Corporation (NDC) Managing Director Nicolaus Shombe said the “mine would cover an area of 19.63 square kilometres and would be part of the Liganga Iron Ore Project in Ludewa District.”
Local Iron Processing
The Deputy Prime Minister commended the Ministry of Industry and Commerce for securing the deal. Dr Biteko said the implementation of the project would enable the country to process raw materials into iron locally and reduce imports. He also assured investors that the business would be profitable, saying the country had a favourable investment climate. In the same vein, he directed the Tanzania National Electricity Supply Corporation (Tanesco) and the Rural Electricity Agency (REA) to conduct a study and submit proposals on how to electrify 10 villages on the banks of Lake Nyasa in Ludewa District.
101 million tons of iron sediment
The assessment of sediment information carried out in 2020 in this Maganga Matitu project showed the presence of 101 million tons of iron sediment, the execution of the project will not only increase the value chain that will promote the industrial economy but will also save the government foreign exchange that would have been used to import iron. The government would retain a 36% stake in the mine and the remaining 64% by Fujian, according to the NDC Managing Director, Dr. Nicholas Shombe. This project was among the country’s major projects. It will bring economic benefits by creating jobs and producing iron needed for many infrastructure projects.
