Chinese firm to inject $3m into coal, iron ore mines Chinese firm, Sichuan Hongda Corporation Ltd will invest $3 million in the Mchuchuma coal and Liganga iron ore production projects in Southern Tanzania. This is the first major mining investment by the firm in Tanzania, after it was selected out of 48 international companies that bid to develop the two projects. The projects will provide the base for industrial activities and a source of coal for both local industrial use, as well as for export. It is also expected that the projects will influence the development of infrastructure. Chrisant Mzindakaya, the chairman of the board of the National Development Corporation told The EastAfrican in Dar es Salaam last week that the Mchuchuma coal project, which is expected to produce 600 Megawatts of electricity will supplement the hydropower sources in Tanzania. "The project will also necessitate the strengthening and building of new power transmission lines," said Dr Mzindakaya. The country is notorious for chronic power rationing, largely due to overdependence on hydro sources. Director of Heavy Industry in the Ministry of Industries, Trade and Marketing, Alley Mwakibolwa, said the Mchuchuma mining area has an estimated 540 million tonnes of coal deposits, which is enough to produce electricity for over 100 years. "Once the Mchuchuma project is complete, the power rationing problem will be solved," he said. Mr Mwakibolwa added that the 600MW of power expected will attract investment in other sectors as well. The Mchuchuma project covers an area of about 141 square kilometres while the Liganga Steel Complex covers 179 square kilometres. In February last year, NDC shortlisted 25 international firms for the Mchuchuma Coal and Liganga Iron ore concessions. Nine firms were picked from these. They are BHP Billiton Worldwide Exploration Ltd of South Africa, China Huadian Engineering Company Ltd of China, Nava Bharat (Singapore) Pte Ltd of Singapore and Rio Tinto Minerals Development Ltd of United Kingdom. The others are Sarda Energy and Minerals Ltd of India, Sichuan Hongda Company Ltd of China, STX Corporation of Korea, Tancoal Energy Ltd/Tata International Ltd of Tanzania and the AES Corporation Of the United States. The government also prequalified five firms for the Liganga iron ore concessions in which Sarda Energy and Minerals Ltd, Sichuan Hongda Co, STX Corporation, Tancoal Energy Ltd/Tata International Ltd the AES Corporation were shortlisted. Tancoal's submission was made alongside Tata International Ltd of India as a joint venture. The Liganga iron ore deposits are located less than 100 kilometres from Tancoal's Ngaka coal project. Source -The East African: http://www.theeastafrican.co.ke/business/Chinese%20firm%20to%20inject%20$3m%20into%20coal%20iron%20ore%20mines/-/2560/1102558/-/vgw7e7z/-/index.html My take: Hivi $3 Million zinaweza kutosha hata kufanya feasibility study tu kwenye mradi wa mkubwa kama huu....au tu hawataki kuonyesha ukweli halisi?. Ukweli wa mambo ni kwamba investors (Sichuan Hongdda na Tancoal) wamekubaliana kuwekeza $3 Billion ambazo kwa madafu ni karibia Tsh 4 Trillion.. Source hii hapa toka Allafrica: http://allafrica.com/stories/201101180131.html I beg ooh!