China co signs $3 bln #Tanzania #coal, #iron deal

DAR ES SALAAM (Reuters) – China’s Sichuan Hongda Co. Ltd. has signed a $3 billion deal with Tanzania to mine coal and iron ore in the resource-rich east African country, local media said on Thursday.

The investment involves construction of the Mchuchuma integrated coal mine, a 600-megawatt (MW) thermal power station and the Liganga iron ore mine in southern Tanzania.

Dubbed the single-biggest investment deal in east Africa, Sichuan Hongda will own 80 percent of the joint venture project, with the remaining stake held by Tanzania’s state-run National Development Corporation (NDC).

China has been increasing its footprint in Africa as it scrambles for oil and raw materials, bought in exchange for low-cost consumer goods.

NDC first announced the planned $3 billion investment by the Chinese firm in January.

By Fumbuka Ng’wanakilala

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