Tanzania Iron Ore

Iron ore and iron production in Tanzania are in the early stages of development, with significant potential for growth. The country has substantial iron ore reserves, primarily located in the southwestern region, particularly in the Liganga area.

Tanzania has several significant iron ore and coal projects in various stages of development, primarily located in the Njombe Region. The key projects are:

Liganga

The Liganga Iron Ore Project is situated in the Ludewa district of the Njombe region and is estimated to contain over 1.2 billion tonnes of iron ore. It’s part of a larger US$3 billion investment plan and is being developed by Tanzania China International Mineral Resources Ltd (TCIMRL).

Mchuchuma

Closely linked to the Liganga project is the Mchuchuma Coal Project, also located in the Ludewa district. This project includes coal mining with estimated reserves of 428 million tonnes and a 600 MW thermal power station. The power station is designed to provide 250 MW to the Liganga Iron Ore project and 350 MW to the national grid.

Maganga Matitu

A more recent development is the Maganga Matitu Iron Ore Project, which is part of the larger Liganga project. In August 2023, the National Development Corporation (NDC) signed a US$77.4 million agreement with Chinese firm Fujian Hexingwang Industrial Co. Ltd to develop this project. It aims to produce 1 million tonnes of iron ore annually and covers an area of 19.63 square kilometers.

These projects have faced various delays since their inception. The Liganga and Mchuchuma projects initially agreed upon in 2011, have experienced significant setbacks. However, in 2023, the Tanzanian government announced plans to compensate 1,142 residents affected by the projects, allocating 15.424 billion Tanzanian shillings for this purpose. This move signals a renewed push to implement these long-delayed projects.

The Tanzanian government views these projects as crucial for the country’s economic development, aiming to boost local steel production, reduce reliance on imports, and create job opportunities. President Samia Suluhu Hassan has directed relevant ministries to expedite the process of selecting investors and implementing these projects, emphasizing their strategic importance for Tanzania’s industrial growth and economic transformation.

Iron Ore Exports

In 2022, Tanzania exported US$753 worth of iron ore, positioning it as the 113th largest exporter of iron ore globally. The primary destinations for Tanzania’s iron ore exports were China (US$450) and South Africa (US$303).

Between 2021 and 2022, the fastest-growing export markets for Tanzania’s iron ore were China, which increased by US$330, and South Africa, which grew by US$99.

According to the Observatory of Economic Complexity (OEC) data, iron ore from Tanzania has the highest export potential in China, with an export gap of US$6,240.