Tanzania is targeting to have an annual iron ore production capacity of 1.1 million metric tonnes per year. In this regard, the country expects to export its first batch of iron ore and steel in the next four years.
The National Development Corporation (NDC) confirmed the reports and said that, once iron ore production kicks off, Tanzania will be categorized as one of the top four iron producers in the African continent and will spur growth of the economy.
Mlingi Mkucha, the acting NDC Managing Director pointed out that they have already been issued with two licenses for iron-ore processing plants; one for Liganga Iron Ore and the other for Mchuchuma Coal Mine.
Production of the iron ore mining and iron smelting plants at Liganga is scheduled for 2018, while construction of the plants will start off early next year. China International Mineral Resources Limited (TCIMRL) and NDC will form a joint-venture in these construction projects expected to take up $3 billion in costs.
Tanzania will save a lot of revenue as local production will reduce importation of iron. Iron production will lift the country to the middle income level and make the 2025 vision a reality according to reports.
There were recent reports that Tanzania was set to ganner profits from minerals other than gold.