Liganga and Mchuchuma Projects
PPP, Mining and Industrialization
- Ludewa, Njombe, Tanzania.
- Fujian Hexingwang Industry Tanzania Co. Ltd
- National Development Corporation (NDC)
- Ministry of Mining, Tanzania
The Liganga and Mchuchuma projects in Tanzania aim to boost industrialization by producing
iron ore, titanium, and vanadium, integrating coal-based power, and establishing a steel processing
plant for economic growth.
Project Name: Liganga and Mchuchuma Mining and Industrialization Projects
Type of Project: Greenfield Mining and Industrial Development
Location: Ludewa District, Njombe Region, Tanzania.
Purpose:
Establish Tanzania as Africa’s largest producer of iron ore.
Boost industrialization and economic growth by developing critical mining and power infrastructure.
Description:
Liganga Project:
Annual production capacity: 219 million tons of iron ore, 175,400 tons of titanium, and 5,000 tons of vanadium.
Lifespan: Over 70 years.
Mchuchuma Project:
Coal mining and power generation.
Construction of a 220 kV power transmission line.
Additional infrastructure: Steel processing plant to support local and export markets.
Phase:
Construction and implementation phase, supported by recent agreements and partnerships.
Timeline:
Expected to become fully operational within the next decade.
Need or Problem:
- Untapped mineral resources limiting Tanzania’s potential as a leading player in the global mining sector.
- High domestic demand for steel and power to support industrial growth.
- Development of world-class mining facilities for iron ore, titanium, and vanadium.
- Integration of coal mining and power generation to support industrial processes and energy needs.
Market Demand:
- Iron ore, titanium, and vanadium are essential for construction, aerospace, and energy storage industries.
- Increased demand for locally produced steel and metals in Tanzania and neighboring countries.
Total Project Cost: Includes a USD 77 million agreement with Fujian Hexingwang Industry Tanzania Co. Ltd
for the Maganga Matitu component.
Capital Required:
Funding through public-private partnerships and international agreements.
Revenue Model:
- Revenue from iron ore, titanium, and vanadium exports.
- Income from domestic steel production and coal-based power generation.
Key Metrics:
- Over 70 years of iron ore production.
- Significant contributions to Tanzania’s GDP and industrial sector.
Community Benefits:
- Job creation and skills development for local communities.
- Strengthening of Tanzania’s industrial base, promoting regional economic growth.
Sustainability:
- Commitment to responsible mining practices.
- Integration of renewable energy in future expansions.
Risks:
- Delays in infrastructure development.
- Fluctuations in global mineral prices impacting project profitability.
Mitigation:
- Strategic partnerships with international firms for funding and expertise.
- Government prioritization to fast-track implementation.
Rewards:
- Establishment of Tanzania as Africa’s largest iron ore producer.
- Long-term economic benefits through export revenue and industrial growth.
- Fujian Hexingwang Industry Tanzania Co. Ltd: Partner in coal and iron mining.
- National Development Corporation (NDC): Key stakeholder in project development.
- Ministry of Mining, Tanzania: Oversees regulatory and developmental aspects.
For investment inquiries and partnership opportunities, please contact:
Email: info@mining.go.tz
2025 • Africa Investment Directory • Matchmaking Africa’s Finest Investment Opportunities.
2025 • Africa Investment Directory • Matchmaking Africa’s Finest Investment Opportunities.