Hengxingwang Forms JV in Tanzania to Develop Maganga Iron Ore Project
On 2 August 2024 in Dar es Salaam, Fujian Hengxingwang (福建恒星旺) of China and the National Development Corporation (NDC) of Tanzania signed a contract to develop the Maganga Iron Ore Project. The Project will mobilize an #FDI of nearly USD 78 million.
The Maganga Matitu iron ore mine is situated in Ludewa District in the Njombe Region of Tanzania and covers an area of almost 20 square kilometers.
The Project is a JV between Fujian Hengxingwang and the Tanzanian State-Owned Enterprise NDC. The foreign investor will hold a majority controlling stake of 64%, while NDC and the Tanzanian Government will own 20% and 16% respectively.
The Project is part of the wider Mtwara Development Corridor which is one of the key #EconomicCorridors that the Tanzanian government has earmarked for special attention.
Maganga Matitu is one of the five hills of the Liganga Iron Ore Project. The Project comprises of the iron ore mine, a #beneficiation plant, and the supporting infrastructure.
The Project will require the relocation of 385 persons and a budget of TSH 4.2 has been allocated for compensation as part of the deal. The National Development Corporation (NDC) of Tanzania has completed a feasibility study and an environment impact assessment for the Project.
Commenting the deal, the Tanzanian Minister of Industry and Trade Dr Selemani Jafo underlined that the significance of the Project for Tanzania’s economic growth.
“This is one of our major projects that will bring economic benefits by employing Tanzanians, and also producing iron that is needed for many of our infrastructural projects that the government is implementing.”
Tanzanian Minister of Industry Dr Selemani Jafo
Based on the exploration data, the mine can output one million tonnes of iron ore annually over a lifetime of thirty-five years. Production is expected to start in January 2025.
The beneficiation plant will convert the iron ore into sponge iron, which is an input for steel industries. Eventually, Tanzania ambitions to produce its own steel products using its large reserve of iron ore.