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China's Sichuan Hongda Inks $3 Billion Tanzania Coal, Iron Ore Deal

Sichuan Hongda Co. Ltd, has signed a deal worth $3 billion for a coal and iron ore mining in Tanzania. The Chinese company is one of many that are seeking a steady supply of raw materials from Africa to support its demand due to industrialization.

Dr Chrisant Mzindakaya  and  Mr Liu Canglog, the chairpersons of the NDC and Sichuan Hongda Group boards of directors, respectively, signed the agreement in Dar es Salaam in the presence of Vice President of the country Mohamed Gharib Bilal.

This particular deal will involve the construction of the Mchuchuma integrated coal mine, a 600-megawatt thermal power station and the Liganga iron ore mine in southern Tanzania. The investment made by the Sichuan Hongda Co is being called the single largest investment deal in east Africa.

The deal will see the formation of a new joint venture company called Tanzania China International Mineral Resources. Sichuan Hongda Co will own 80% stake in the joint venture which accomplishes all this while the National Development Corporation, a Tanzania state run agency will own the remaining 20% stake in the joint venture.

Trade Minister Cyril Chami said that the NDC had an option to increase its share to 49% once the Chinese company had recovered its initial cost of investment. Sichuan Hongda had already secured $600 million initial financing from Chinese banks to launch the investment, with execution of the projects probably starting within the next six months.

Joel Scanlon

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Joel Scanlon

Joel relocated to Australia in 1995 from the United Kingdom and spent five years working in the mining industry as an exploration geotechnician. His role involved utilizing GIS mapping and CAD software. Upon transitioning to the North Coast of NSW, Australia, Joel embarked on a career as a graphic designer at a well-known consultancy firm. Subsequently, he established a successful web services business catering to companies across the eastern seaboard of Australia. It was during this time that he conceived and launched News-Medical.Net. Joel has been an integral part of AZoNetwork since its inception in 2000. Joel possesses a keen interest in exploring the boundaries of technology, comprehending its potential impact on society, and actively engaging with AI-driven solutions and advancements.

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