Tanzania's National Development Corporation (NDC) signed a $77 million contract on Saturday with Fujian Hexingwang Industry Tanzania Co., Ltd. to facilitate iron ore mining, and it will be located in Ludewa District, Njombe Region.
NDC managing director Nicolous Shombe announced that production is expected to start in 2027. Over 300 local residents will begin receiving compensation in January 2025, with $1.56 billion (Sh4.2 billion) set aside for this purpose.
Iron ore and coal mining contracts should benefit local communities, Deputy Prime Minister and Energy Minister Dr. Doto Biteko told the local media. He assured residents that the project would significantly improve their lives and noted that the government will own 36% of the project, while investors will hold 64%. The contract mandates that some management positions be held by Tanzanians.
Currently, Tanzania spends around $1.22 billion (Sh3.2 trillion) annually on steel imports, making it the second-largest foreign exchange expenditure after oil.