Sichuan Hongda to Invest $3bn in Tanzanian Projects

20 January 2011 (Last Updated January 20th, 2011 18:30)

Tanzania's National Development Corporation (NDC) said Sichuan Hongda of China will invest $3bn in the country to construct an integrated coal mine in Mchuchuma and an iron ore mine and a thermal power station in Liganga. NDC board chairman Chrisant Mzindakaya told reporters that the C

Tanzania's National Development Corporation (NDC) said Sichuan Hongda of China will invest $3bn in the country to construct an integrated coal mine in Mchuchuma and an iron ore mine and a thermal power station in Liganga.

NDC board chairman Chrisant Mzindakaya told reporters that the Chinese firm was selected from a list of bidders including Rio Tinto and BHP Billiton, reports Reuters.

According to the NDC, the projects will be implemented in a joint venture under a public-private partnership.

Mchuchuma has 536 million tons of coal reserves, while Liganga is rich in iron, vanadium and titanium minerals with reserves up to 1,200 million metric tons.

The contract for the proposed projects is expected to be signed next month to commence the work.