Thursday, July 30, 2009

48 Firms Eying Tanzania Coal Deposits

Tanzania said on Wednesday that 48 foreign and local firms were interested in developing coal and iron ore deposits in the southern part of the country.

The east African nation has proven coal deposits of 125.3 million tonnes in Mchuchuma in south west Tanzania near its border with Malawi and Mozambique.

It also has a proven iron ore deposit of 45 million tonnes in Liganga in the centre of the country.

"In our search for investors for the Mchuchuma coal project and the Liganga iron ore project, 48 investors have shown interest, and talks are ongoing to determine the best ones," Trade Minister Mary Nagu said in a ministerial presentation.

Interested firms include India's Tata Steel Company, Rio Tinto, BHP Billiton, China CAMC Engineering, Nava Bharat Singapore and Western Metals of Australia.

The state-run National Development Corporation said the Mchuchuma project would entail building a 400 MW power plant and about 200 km of high voltage power lines.

The whole project is estimated to cost about $660 million. The Liganga iron ore project is still at the feasibility study stage.
Tanzania already has significant investments in its mining sector, largely in gold, but is increasingly attracting interest in minerals like iron, uranium and nickel.

Source: Reuters

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