Joseph Isangura
After more than a decade of delays, Tanzania has launched a new feasibility study for the long-stalled $3 billion Mchuchuma and Liganga mining and industrial projects in Ludewa District.
Officials hope the updated study will pave the way for full-scale development within three years.
Managing Director of the National Development Corporation, Nicolaus Shombe, told reporters that the updated feasibility study began in late July and is expected to take at least six months. “We are revisiting the original study because conditions have changed significantly, especially in technology and market dynamics,” he said.
The study is being conducted in collaboration with the project’s investors, the Minerals Commission of Tanzania, and the NDC. It will review technical feasibility, infrastructure requirements, and market viability to ensure the project can meet its economic and industrial objectives.
Originally conceived over a decade ago, the Mchuchuma-Liganga initiative includes a coal mine at Mchuchuma, an iron ore mine at Liganga, a 600-megawatt coal-fired power station, and a transmission line connecting the two sites. The iron ore is expected to feed local steel production and industrial activities, while the coal would supply energy to both the power station and processing plants.
Delays have plagued the project, mainly due to challenges faced by the initial investor, which hindered their ability to deliver. In December 2024, the government confirmed ongoing discussions with the Chinese government to identify a new investor capable of executing the project.
Also Read; Senegal Debates Asset Disclosure Law Amid Controversy
Shombe said that within three years of completing the study, the investor will be required to construct key infrastructure, including processing facilities, a railway system, and related industrial amenities. Once the infrastructure is in place, production is expected to begin promptly.
President Samia Suluhu Hassan has directed the Ministry of Industry and Trade and the Ministry of Planning and Investment to expedite investor acquisition to revive the project and ensure it contributes meaningfully to Tanzania’s industrial development.
The Mchuchuma and Liganga project is seen as a cornerstone for the country’s industrial ambitions, providing essential raw materials such as iron and coal, reducing dependence on imports, and supplying materials for initiatives like the Saturn Corporation vehicle assembly plant in Kigamboni, Dar es Salaam.
Observers note that successful implementation could transform Tanzania’s industrial landscape, supporting domestic manufacturing, creating jobs, and strengthening the mining sector’s contribution to the national economy. The renewed feasibility study signals a clear government commitment to advancing strategic mineral projects and industrialization efforts across the country.
