Chinese firm Sichuan Hongda will invest $3bn to carry out coal and iron ore mining operations in Tanzania.
The funding will be used to construct the Mchuchuma integrated coal mine, Liganga iron ore mine and a 600MW thermal power station in southern Tanzania, reports Reuters.
Tanzania’s state-run National Development Corporation (NDC) and Sichuan Hongda have formed a joint venture, Tanzania China International Mineral Resources (TCMR), to build the mines.
Sichuan Hongda will hold an 80% stake in TCMR, while the remaining 20% stake will be held by NDC.
According to government estimates, the Liganga area, which is rich in iron, vanadium and titanium minerals, has estimated reserves between 200 and 1,200 million metric tonnes, and the Mchuchuma deposits have coal reserves of more than 480Mt.