Wednesday, 19 Jan 2011
Reuters reported that China's Sichuan Hongda Co Ltd will invest USD 3 billion in a coal fired power plant and two iron ore mines in Tanzania.
Mr Chrisant Mzindakaya chairman of state run National Development Corporation told Reuters that “The Chinese firm was picked from a long list of bidders as the preferred investor after winning an international bidding process. We are now negotiating final details before a contract can be signed.”
Mr Gideon Nassari MD of NDC told reporters “Our aim is to have the contract signed next month in order to pave the way for the actual implementation of the projects.”
The investment involves construction of the Mchuchuma integrated coal mine and thermal power station and an iron ore mine in Liganga.
NDC said the projects would be implemented in a joint venture with the Chinese investors under a public-private partnership.
Financial details of the investment projects were yet to be confirmed.
Mchuchuma, located 800 kilometres west of Dar es Salaam, has identified reserves of 536 million tonnes of coal. The investment in the coal mine would also involve construction of a 600 MW coal-fired power plant.
NDC said early studies indicated that the Liganga area was rich in iron, vanadium and titanium minerals. Reserves are estimated to be between 200 and 1,200 million tonnes, with 45 million already proven through drilling.
Tanzania, Africa's fourth largest gold producer with reserves of uranium, nickel and coal, passed a new mining law last year requiring the government to own stakes in future mining projects and mining companies to list on the Dar es Salaam Stock Exchange.
Other bidders included Nava Bharat (Singapore) Pte Ltd, STX Corporation of South Korea, US power company AES Corporation and India's Sarda Energy & Minerals Ltd.
Sourced from Reuters
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