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  30 october 2006 / 30 октября 2006 года
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1. Project Title

Liganga Vanado-Titanium Magnetite Ore Project

Project Description

From the geological setting, Tanzania is endowed with tremendous mineral wealth. The vanado-titanomagnetite ore reserves at Liganga and surrounding area are believed to have excellent range of magmatic associated deposits including Ni-Cu-Co, PGMs and V-Ti magnetite, which could be a major source of iron and steel industry, titanium, vanadium and PGMs for international market. The V-Ti magnetite ore reserves are estimated at between 200-1,200 million tonnes of ore rich in vanadium pentoxide, titanium dioxide and iron ore. PGMs have not been investigated to depth.

The National Development Corporation is desirous of exploiting these deposits to extract economic minerals for downstream value chain.

The Liganga V-Ti Magnetite Ore deposits is located about 850 km Southwest of Dar es Salaam between Latitudes 9° 51´00"S and 10° 00´05"S and Longitudes 34° 51´00"E and 35° 00´20"E. The area can be reached from Dar es Salaam by a Dar es Salaam/Morogoro/ Iringa/Njombe/Mundindi road.

The Government of Tanzania through NDC is now contemplating the future of the Iron and Steel Industry in the country. NDC, which is responsible for investigations and development of Liganga iron ore deposits, has plans to undertake the implementation of this project in stages as detailed below: -

Phase I

During the initial stage, it is proposed to produce titanium and vanadium concentrates for export market. Accordingly, about 2.5 Million tonnes of Liganga titaniferous ore is targeted for mining to produce the following products: -

  1. 250,000 tonnes per year of titanium (TiO2) concentrates
  2. 11,000 tonnes per year of vanadium (V2O5) concentrates

The metallurgical and infrastructural facilities required for the production of vanadium and titanium shall consist of an ore mine, a crushing and comminuting plant, a low intensity magnetic separation plant, an electrostatic separation plant, DC plasma arc furnaces, shaking ladles, water supply, electricity supply and auxiliary facilities including township.

Phase II

The second stage of the development entails production of 1.0 million tonnes per year of iron and steel products including special steels with an option of expansion. The said volume to be produced at the rate of say 3300 tonnes daily would need reliable means to transport the required raw material to the complex and finished products to consumers through Dar es Salaam, Mtwara harbour and other major towns both for local and export markets.

Programme allocation

Mtwara Development Corridor

Country

Tanzania

Economic sector

Mining and Quarrying

Est Capex value ($US millions)

850 - 1,140

Project stage

Pre-feasibility

Current status (WIP)

Arrangements for financing a techno-economic study to determine the commercial viability of the project, including the updating of the existing studies are being made.

Preferred Mode of Investment

PPP

No. of jobs created

8,700 direct jobs and 23,988 indirect jobs

5. Project Title

Lake Natron Soda Ash & Supporting Infrastructure

Project description

Location:

A large deposit of soda ash deposits is found in northern part of Tanzania at latitude 2o20’ South, and longitude 36o 10’ East in the Lake Natron, 160km northwest of Arusha town.

The Lake Natron is having two types of naturally occurring raw materials: one is trona crust deposited on the surface of the lake & the other is saturated brine below trona. Fluoride level in the raw materials available in the African Rift Valley (Lake Natron & Lake Magadi) is high compared to any other natural soda ash deposits. As the high fluoride impurity impact on the environment, fluoride removal from raw material is on high priority.

The project has been attracted an investor to partner with NDC to establish/ set up a manufacturing facility to produce 1.0 million tones per year of soda ash and transport to Tanga port for the export to Middle East, Indian sub-continent and South East Asian growing markets. The project envisages an energy efficient process route for manufacture using Lake Liquor and captive facility to meet the steam, power and utilities requirement for the plant. Project has already selected a world-renowned consultant to undertake Environment and Social Impact Assessment (ESIA) study, to identify the possible impact to the Lake Natron ecosystem and to the Masai community around. The project proponents are sensitive to environmental concerns and social concerns of the society in general.

Lake Natron can be reached from Arusha through Makuyuni – Mto Wa Mbu road. Arusha to Mto Wa Mbu is tarmac road and from Mto Wa Mbu to Lake Natron is passable track road and it has to be developed to the required standard.

However, the deposit is located at remote area from the marketplace and absence of good infrastructure for movement of the finished products to the end consumers, slows down the development of the project in the area hence hinter development of realization country dream for industrial development for the economic benefit of the people at large. Following infrastructure facilities are required to be developed for viability of the project:

Road

To construct industry truckable road from Mto Wa Mbu to the Plant location. The road distance between these two locations is approximate 150 KM.

Tanga Port

To develop the new dedicated jet with the following infrastructure

  • Container loading / unloading crane
  • Self propelled Lighters, Pontoons of 2000 DWT & Tug to handle 750,000 MT.
  • Automated discharge / loading cargo at jetty point.
  • Finished product warehouse with floor area of 40,000 M2 to store 20,000 MT.
  • Dedicated rail & road connectivity with existing network.
  • Coal storage yard with floor area of 10,000 M2 to store 30,000 MT at any point of time.
  • Container storage yard. (20,000 M2)

Railway

Construction of a new track line between Arusha & Lake Natron and upgrading of meter gauge track line between Arusha & Moshi to link with Tanga port from Moshi is needed to be done for project viability.

Programme allocation

Tanga Development Corridor

Country

Tanzania

Economic sector

Mining and Construction

Est Capex value

US$ 630 – 650 millions

Project stage

Implementation

Current status (WIP)

ESIA study

Preferred Mode of Investment

PPP

No. of jobs created

500 direct jobs and 2000 indirect jobs

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