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Government and investors are in talks meant to pave way for implementation of the Mchuchuma and Liganga power projectsin Njombe Region’s Ludewa District, TPJ has learnt. .

In a written statement to Parliament in response to a question asked by the member for Ludewa, Deogratius Francis (CCM), the Ministry of Trade and Industriessaid all strategic projects in the extractive sector including those in mining, gas and oil were under review in order to align them with newly amended laws.

According to the statement, Mchuchuma and Liganga projects, which aim to producecoal and iron respectively, the latter wasalso expected to produce one metric tonne of vanadium pentoxide and titanium dioxide per year.

Furthermore, the statement said a 600 MW coal-fired power station would be constructed as part of the Mchuchuma projectfrom which 250 MW would be used by the iron plant, with 350 MW going into the national grid.

The ministry told Parliament that a lack of funds and technology to drill iron core were the reasonsbehind delays of the projects which will be implemented by a Chinese company known as Sichuan Hongda Group following signing of the contract worth $3.1 billion (over Sh. 6.8 trillion).

TPJ understands that together with other benefits to the country, estimates in Year 2010 showed that the project would create a total of 35,000 job opportunities.

The Chinese company, with its local affiliate Tanzania China International Mineral Resources Limited was expected to team up with the National Development Corporation to implement the project.

In July last year, a director at Tanzania Investment Centre, Geoffrey Mwambe, told the press that while planning for the projects, the Government also envisaged a 600km railway line connecting Liganga and Mchuchumamining cites with MtwaraPort.

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