The Minister for Trade and Industry, Dr Abdallah Kigoda, on Tuesday unveiled a catalogue of industrial projects, including a 5trn/- Mchuchuma coal and Liganga iron ore projects set to kick off this year.
Moving his ministry’s budget estimates, Dr Kigoda stated that the government and partnering investor have already secured 5tri/- for implementation of the projects.
“We’re now waiting for equipment for the project and other building materials so that the President will launch it before expiry of his tenure.
This investment will be the largest single industrial investment since Tanzania got independence in 1961,” he explained. The minister noted that the project will involve construction of iron industry with the capacity of producing one million tonnes of iron per year and construction of a 600MW plant, of which 250 MW will be consumed by the iron industry and 350MW will be fed into national grid.
“Such production will make Tanzania the third largest producer of iron in Africa. The two projects will create 32,000 jobs and generate about 3.13tri/- per year, ” he noted further.
Dr Kigoda said the projects would be implemented by Tanzania China International Mineral Resources Ltd (TCIMRL), which is a joint venture of National Development Corporation (NDC) and Chinese firm-Sichuan Hongda Group.
The minister explained that another coal project was being implemented by TANCOAL Energy Limited (a joint venture of NDC and Intra Energy Corporation of Australia).
Between March 2014 and 2015 the firm produced 327,141 tonnes of coal worth about 25.2bn/-. The firm is selling coal to Tanga Cement, Mbeya Cement, Lake Cement, Tanzania Gypsum Ltd, Mufindi Paper Mills and Simba Lime.
The minister said construction of iron ore project at Maganga Matitu and Katewaka would start in 2015/16 at a cost of 350m US dollars and would generate 150m dollars per year.
He mentioned other industrial investments as Malaria biolarvicides plant in Kibaha, wind power projects in Singida and Njombe regions, soda ash project in Engaruka basin and development of Special Economic Zones in Dar es Salaam, Coast, Tanga, Kigoma and Mtwara regions.
According to him, President Jakaya Kikwete will launch Malaria biolarvicide plant in Coast on June 25 this year and that technology applied by the plant is unique in Africa.
“The plant will produce biolarvicide that kill mosquitoes and therefore will help in eradicating malaria in the country. The insect killers (biolarvicide) will also be sold outside the country and thus generating 48.6m dollars and the plant will create 670 jobs,” Dr Kigoda explained.
He said a 300 wind power project in Singida will start soon after signing loan agreement between Treasury and China’s Exim Bank. The minister noted that the government was in final stages of getting partner to run ash soda project at Engaruka in Arusha.
Upon its completion, the project will be producing one million tonnes of ash and salt products, making it the second largest producer in the world after the US.
According to the minister, up to the end of 2014 investments in Special Economic Zones reached 2.4tri/- with 32,000 jobs. “I’m glad to inform Parliament that Tanzania is the most preferred destinations for industrial investment in the region. For instance, until second quarter of 2014/15, 124 new industrial projects were registered which is equivalent to 24 projects per month”, he explained.
He noted that upon completion of three cement plants, Tanzania will meet cement demands and produce surplus for exports, as one of the plant will be able to produce cement equivalent to those produced by all existing cement plants in the country. In a bid to develop textile and garment industry, a new industry called DAHONG will soon start production in Shinyanga region.
The industry has capacity of consuming all cotton produced in the lake zone. On development of hides and leather, Dr Kigoda said that construction of two large industries, Meru Tannery and Shinyanga Xing Hua Investment Ltd have been completed.
The two industries will have capacity of processing all raw skins and hides produced in the Northern and Lake zones. Dr Kigoda told Parliament the government had started the process of reviving General Tyre (EA) and Kilimanjaro Machine Tools Ltd.
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