According to an announcement that was recently released by the Tanzania National Development Corporation (NDC), fifteen different firms have expressed interest in investing in the Tanzania coal mine of Mchuchuma.
In a report that was published by The Daily News Tanzania, Gideon Nassari, the Managing Director for the NDC, indicated that the process of looking for a reliable investor had already begun and was set to be finished this June.
Mr. Nassari went on to explain that, since the announcement of the Request For Qualification (RFQ) last month, the NDC had already received applications from 15 companies.
Following the deadline for the submission of RFQ, January 25, the NDC is planning to shortlist the applicants.
“Shortlisted applicants would later be required to present their proposals after visiting the site,” said the NDC Managing Director.
According to Mr. Nassari, the RFP process will last approximately three months, after which time, proposals will be brought first to the High Level Government Committee and then to the Cabinet, where the final decision will be made.
With a production capacity of 600 MW, the Mchuchuma Coal Mine is expected to both solve the Tanzania electricity problems and to help create an opportunity to extract minerals from the Liganga Iron Ore, which is located 50 kilometers from the Mchuchuma mine.
Because the Mchuchuma and Liganga projects are being combined, Mr. Nassari has indicated that they will require a great deal of investment, particularly in regard to the system of infrastructure that connects the two, including both road and railway lines.
Mr. Nassari went on to explain that the ultimate goal of the corporation was to find a reliable investor with a proven record of success in dealing with projects of a similar magnitude.
The extraction of Liganga Iron Ore is expected to follow the completion of the Mchuchuma mine as it will require heat from the coal in order to create enough heat to melt the iron
In addition, the extraction of iron is expected to serve as a major incentive for some of the county’s leaders in metal industries.
While the search for a qualified investor is still underway, the NDC has said that the activities that can be completed prior to the investment process have already been completed.
Some of the completed projects include the provision of sensitization programs to those who live in the areas that will benefit from the project, the establishment of demarcations both projects and the preparation of Land Use Plan that will be used in order to help both farmers and livestock keepers better understand their boundaries.
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