#Tanzania: Economy, Trade, Development

[bantugbro]

Rosatom set for Tunduru uranium mine opening

RUSSIAN State corporation rated top in uranium mining and processing, has acquired all shares from the Australian firm initially licensed to explore for the strategic metal in Tunduru, government officials said Tuesday this week in the city.

If exploited, the project will put Tanzania further on the world map of strategic minerals along with its fourth position in gold mining in Africa, observers say.

Aloyce Tesha, senior geologist and spokesman in the Ministry of Energy and Minerals, said this week that benefits expected from the project at Mjunju River in Namtumbo ward of Tunduru district, Ruvuma region are significant.

Rosatom Corporation has several branches including ARMZ operating in a number of countries, inclkuding China, Turkey, Belarus, Vietnam, Ukraine, Armenia, Jordan and Kazakhstan.

Broad employment opportunities would be opened up when the mining starts, helping to uplift living standards of people in the area by widening market opportunities offered by such activity, he said.

As uranium is a valued strategic mineral in the world market, substantial foreign exchange earnings would also be expected from the project, though no figures can be cited as being projected.

Uranium is used for electricity generation and is a core raw material in nuclear arms manufacturing, apart from medical sector uses, he further noted.

The company says it would deploy only a few experts from Russia who would be ready to train local technicians in the relevant areas as well as leave certain spheres to local recruits with the required training.

Initial surveys indicate that the area has deposits of up to 25.1 million tons, facilitating production of 3.7 million pounds of 'yellow cake' with the deposits lasting for 12 years. Chances exist though that the potential deposits in the area being higher than current surveys show, the official noted.

Production cost for single yellow cake is estimated at US$ 25.05 which has been already included into working capital estimation for the project, reported to be US$ 298 million.

Stakeholders asked to comment over the project hail the government for allowing top class companies to explore the minerals but they should account for every gramme to be extracted. “People would like to see the results benefiting the entire nation and not individuals as in the case of other minerals like tanzanite,” a stakeholder reacted.

Regarding environment preservation sources have it that Rosatom is an experienced firm with ability to keep the mine environmentally friendly. Effective environmental controlis among key issues they have been working to put in the design of work to be done in setting up the mine. Company officials reported to the site from the beginning of the year.

Uranium mining is important enough for stakeholders to have been invited at a workshop recently in Arusha to start providing education in the handling of the mineral and processing up to exportation, and how environment will be protected.

Mjunju River has an area of about 100 square kilometers with deposits estimated to weigh 88.3 million pounds from which the 12 years shelf life of the mine is projected.

The workshop in Arusha comprised of the Acting Director General for the Tanzania Atomic Energy Commission (TAEC) Justine Ngaile, the Director General of the National Environment Management Council (NEMC) Eng. Bonaventure Baya and Mjunju River Project official, Francis Rweyemamu.

[bantugbro]

Tanzania’s oil prospects get even brighter

A recently concluded geological assessment in Tanzania’s Southern offshore deep oil exploration project has shown prospective resource potentials of over a billion barrels of oil and gas.

An independent assessment of the first prospect of Dominion Petroleum Limited’s block 7 in Tanzania shows a resource of one billion barrels of oil, or seven trillion cubic feet of natural gas.

According to Tanzania Petroleum Development Corporation (TPDC), Block 7 which is in Kilwa District, Lindi Region looks promising.

Information on the new discovery has also been published by the respected Wall Street Journal, quoting sources from within the exploration company.

The United Kingdom-based company said, in an update on its operations released yesterday, that the results on competent persons report (CPR) regarding the first prospect in Block 7, offshore deep-water has shown a prospective resource of one billion barrels of oil, or seven trillion cubic feet of natural gas.

The CPR was recently concluded by Energy Resource Consultants Limited (ERC). However, the consultants have placed a risk on the prospect, called “Alpha”, with a 12 per cent Chance of Success (CoS).

Reached for comment yesterday, TPDC said that despite such positive developments, there was still a lot to be done before Tanzania could have actual oil flowing.

“We know them (Dominion Petroleum Limited). They have been here since March 2007…There will have to be a three Dimensional Seismic survey before we can talk of oil production,” said TPDC’s chief exploration geophysicist Stephen Kalwihura, promising to release further details later.

Dominion on its part says such a development was only the first prospect in the block and the CPR work undertaken on Alpha was intended to assist in planning a 1,000sq km Seismic survey which is projected to begin next month and will take approximately two months to acquire.

The company’s CEO, Mr Andrew Cochran, said once the company is armed with the upcoming 3D seismic survey, it will carry out additional technical analyses and update the full prospect and lead inventory accordingly.

“Once completed, Dominion will initiate further work on the other prospects and leads already identified,” he said.

“Once completed, Dominion will initiate further work on the other prospects and leads already identified,” he said.

Commenting on the development, Dominion chief executive officer Mr Cochran said: “This is an excellent start and demonstrates the ‘world class’ nature of Block 7 in terms of hydrocarbon potential. The Alpha prospect is not unique, nor even the largest so far identified, but simply the most robust prospect to guide our continued work in the area.”

Dominion, which is listed in the London Stock Exchange, has raised over Sh65 billion through share sales, to finance its projects in Tanzania and Uganda.

Last February the company slashed its exposure to onshore assets in Tanzania by agreeing a provisional farm, in a deal with French oil and gas assets in Uganda and offshore Tanzania.

In March the company contracted a vessel to shoot a third generation drilling seismic on its wholly owned Offshore Deep Water Block in the south of the country. Work is expected to commence this June.

The LSE-listed company also expects to commence the drilling of the PSA Kianika-1 well onshore Tanzania this month, where road construction has already been complted. The well is targeting recoverable resources amounting to 77 million barrels of oil, equivalent to a structural closure.

On February 15, 2010, Dominion announced that it would reduce its interests to 10 per cent in the Mandawa and Kisangire PSAs, through a farm-out agreement with Maurel & Prom, which still remains subject to government approvals.

“With funds from our placing, all necessary services and equipment having been identified and now secured, we are kicking off our 2010 exploration programme,” said the company.

This includes the first ever well in the Lake Edward Basin of Uganda, as well as a large scale 3D seismic shoot in the emerging East Africa deepwater play of Tanzania.

“We have spent much time and effort getting all in place and are now ready to get to work on the ground. The next few months will therefore be the most active period experienced by Dominion so far in its corporate history,” said Andrew Cochran.

Dominion is engaged in the exploration and development of oil and gas projects, primarily in East and Central Africa. In Tanzania, the company has one offshore and three onshore production sharing agreements in respect of five exploration licenses covering a total area of approximately 12 million acres.

http://www.thecitizen.co.tz/news/4-n...-brighter.html

[bantugbro]

BG Group announces third Tanzanian gas discovery

BG Group announced its third Tanzanian gas discovery with the Chaza-1 well, located in Block 1 approx. 18 km offshore southern Tanzania in a water depth of around 950 metres.
The discovery is some 200 km south of BG Group's Pweza and Chewa discoveries, previously announced.

The three successful wells so far drilled by the joint venture of BG Group (60 %) and Ophir Energy (40 % operator) form part of an initial work programme planned for Blocks 1, 3 and 4 offshore Tanzania.
The initial work programme also includes the acquisition of a minimum of 4,000 sq km of 3D seismic data. BG Group has the option to assume operatorship of all three blocks upon completion of the initial work programme.

To date in 2011, a 3,200 sq km 3D seismic survey has been acquired in Blocks 3 and 4, and a second 3D survey of 1,800 sq km is nearing completion in Block 1.
It is intended that a second drilling campaign will commence in late 2011.




Background
In December 2010, BG Group announced that its second Tanzanian exploration well, Chewa-1, had also discovered gas. The well, located in Block 4 approx. 80 km offshore southern Tanzania in a water depth of around 1,300 metres, is some 8 km north-west of BG Group's Pweza-1 gas discovery announced in October 2010.
In May 2010, BG Group received consent from the government of the United Republic of Tanzania to farm-in to interests held by Ophir Energy offshore southern Tanzania in Blocks 1, 3 & 4 of the Mafia Deep Offshore Basin and the northern portion of the Ruvuma basin.

http://www.gasandoil.com/news/discov...a2c06873e4d8e0

[bantugbro]

Petrobas to Start Tanzania Oil exploration in Sept

DAR ES SALAAM (Reuters) - Brazilian petroleum company Petrobras expects to start exploration in September for oil and gas off the coast of Tanzania, which is known to have significant gas deposits.

Patrobras has a production sharing agreement licence for Block 5 and 6 deep offshore basin off Tanzania and plans to launch the Poseidon, a new exploration vessel, in South Korea, which is expected in Mtwara, south east of Tanzania.

"This ship will be in Mtwara and we hope to start work at the start of September," Petrobras Tanzania chief executive Samuel Miranda said in a statement issued on Thursday by the Tanzanian Prime Minister Mizengo Pinda's office.

Petrobras, which has invested $11 million in Tanzania, and plans to spend another $14 million to develop Mtwara port, said the ship will carry out exploration for a duration of 20 months.

Tanzania's government puts the east African country's proven natural gas reserves at 7.5 trillion cubic feet.

There has been increasing interest in exploration for oil and gas in east Africa following Tanzania's discoveries, and those of oil in Uganda.

Pinda and Miranda are on a visit to South Korea and are expected to preside over the launch of the ship on Friday, which will carry out exploration for a duration of 20 months.

Tanzania has licensed at least 17 international companies exploring for both offshore and onshore energy sources in the country, the region's second-largest economy.

Among other firms that hold exploration blocks in Tanzania are Oslo-listed Artumas Group Inc (AGI), France's Maurel & Prom , Norway's Statoil, Royal Dutch Shell and Aminex.

According to a research note by Citigroup, the East Africa region is expected to experience a pick-up in farm-ns and mergers and acquisitions to consolidate smaller players.
http://af.reuters.com/article/invest...7660EW20110707

[bantugbro]

Pinda To Launch $800m Oil Exploration Vessel

image hosted on flickr

Prime Minister of Tanzania Mizengo Pinda (Front) inspecting the ship at Geoje Port in Seoul.

Prime Minister Mizengo Pinda has said that the government will not incur any costs when Poisedon, a marine vessel being built in South Korea for oil and gas exploration along the Tanzanian coast, begins work.

He made the remarks here yesterday after inspecting the ship at Geoje Port in Seoul.

Pinda, who is expected to inaugurate the vessel today, said experts from Petrobas Company of Brazil are already busy conducting research to identify two areas where the vessel will drill oil and gas in Tanzania.

The stage reached so far is a good sign that the investment in Tanzania is possible, the Prime Minister said, promising that the government would do whatever is possible to enhance security when the experts start work to forestall any danger posed by pirates.

Briefing the PM on the assembling of the vessel, Petrobas Tanzania Limited executive director Samuel Miranda said they expect the vessel to work on the country’s coastline for a total of 20 months.

He said they have already spotted two areas on Mafia Island and in Mtwara Region where the vessel will work.

Commenting on the need to improve infrastructure, Miranda said so far they have invested USD11m and by December this year the company will have provided USD14m for the development of Mtwara Port.

He said the firm has started conducting training for 50 youths in Mtwara Region, adding that those performing well would work on the vessel.

“This ship will be based in Mtwara and we expect to start work in early September… we started with special training on oil exploration for 50 youths on July 1, this year,” explained Miranda.

“The training is being conducted in partnership with the Tanzania Petroleum Development Corporation (TPDC), Tanzania’s Vocational Education Training Authority (VETA), Petrobas and a Brazilian institution (CENAI), which operates like VETA in Tanzania,” he noted.

The Brazilian firm has meanwhile entered into a contract with four Tanzanian engineers who have undergone short-term training in oil exploration in Brazil and will later study in the UK.

David Gray, project manager for the UK-based firm Ocean Rig, which is supervising the building of the vessel, told the PM that the ship, 242 metres long and 52 wide, will cost USD800m.

“This is the fourth vessel to be built by the Korean firm for Petrobas. Two ships were taken to Brazil, while the third, Mykonos, will also go to Brazil. The fourth one, Poseidon, will go to Tanzania…it will have the capacity of accommodating 217 beds, health services unit and recreational facilities,” he said.
Energy and Mineral minister William Ngeleja, who is in the PM’s delegation, said ongoing investments in the southern part of Tanzania augur well for the growth of the country’s economy, particularly for Lindi and Mtwara regions.

“What we need is to see employment opportunities increase for the people in these regions. There would be employment on the land and in water as well as jobs for service providers in hotels and the investors’ residences,” he said.

He said hospitality industry operators would be among the beneficiaries of this huge investment.

Challenging leaders in the two regions to be prepared to supervise town planning, Ngeleja said: “They must set aside industrial, residential and recreational areas so that there will be no chaotic planning in the near future.”

“Congestion must not be allowed to happen if the leaders are prepared because they are aware of the huge investment that is going to take place in the regions,” he added.

The minister said Mtwara Port would be developed thanks to various forthcoming economic activities, including electricity production from gas, the construction of fertiliser and cement factories and the petrochemicals commonly used in such factories. “There is ample opportunity for exportation owing to production of liquefied natural gas. This is expected to improve the economic development of the regions substantially,” he noted.
http://in2eastafrica.net/pinda-to-la...ration-vessel/

[bantugbro]

Tanzania Saves The World From China's Monopolistic Grip On Rare Earth Metals

China has over 95% market share in the global production of rare earths, but many alternatives are now being examined, such as the Wigu Hill deposit in Tanzania owned by Montero Mining.
Metal Miner:
Apparently Wigu Hill has a lot going for it, both geologically and geographically. Geologically because the deposit is carbonatite in form with no associated radioactive materials present such as uranium or thorium that while potentially adding a revenue stream also greatly complicate the handling, concentrating and refining processes. Concentration is another facet of the geological advantages in Wigu’s favor, in places concentration goes as high as 25%, but is likely to average 7% to 10% according to the article. The other advantage is Tanzania’s geographic proximity to world class mining, processing and refining expertise in neighboring South Africa.
Opportunities like this in Tanzania should be a reminder that there are actually rare earth deposits all over the world. Actually, production in places like North America was shut down in the past due to environmental concerns plus cost competitiveness from China. South Africa and India used to be the world's leading producers.
Now that rare earths demand is surging due to their use in battery technology, old production areas can be re-started and new ones can be discovered.
Wagu is of even higher grade than China's huge Bayan Obo mine that produces most of the world's supply

While China might have a monopoly in the near-term, since it takes time to re-start old rare earth mining activities in other places, in the long-term there is actually no shortage of 'rare earths'.

Read more: http://www.businessinsider.com/tanza...#ixzz1UoOTHYIP

[bantugbro]

Montero could produce Tanzanian rare earths in 2012 - CEO

TORONTO (miningweekly.com) – Montero Mining, which owns a rare earth project in Tanzania, is accelerating its development plans, and believes it can have a small mine up and running at its Wigu Hill project as early as 2012, CEO Tony Harwood said in an interview on Wednesday.

The Toronto-listed company had previously indicated it would achieve first output around 2015/16, but decided it would be better to get its foot in the rare-earths door earlier.

“The first out of the gate in terms of production is going to win it,” Harwood told Mining Weekly Online.

China produces around 97% of the world’s rare earths, used in a wide range of modern technologies, including hybrid cars, wind turbines and smart phones, and has been cutting back on export and production quotas, leading to a supply squeeze.

Companies including Australia’s Lynas Corp and Colorado-based Molycorp have been racing to get their rare earth mines into production to take advantage of the soaring prices that have resulted from the supply shortage.

Some market watchers, including Goldman Sachs, have said supplies would remain tight until around 2013, when Lynas and Molycorp ramp up their mines, which could lead to an oversupply and falling prices.

Montero aims to publish a maiden resource for its Wigu Hill project by early July, with both a prefeaseibility study and a feasibility study for a small operation due by the end of 2012, Harwood said.

Harwood said the first phase would be “more of a quarry than a massive operation”, producing “a few thousand tons a month” of rare earths concentrate.

At the same time, the company will carry out a feasibility study for a larger second phase, which would include the possibility of building a rare earths refinery, to produce the more valuable rare-earths oxides.
Montero was considering building the refinery in South Africa, but Korea, India and China were also potential locations.

INTEREST

Despite the fact that Goldman Sachs and other analysts have said the rare earths rally might come to an end by 2013, Harwood said there is still “massive demand in the marketplace” for the metals.

“We’re being contacted regularly by groups that want off-take, that want to participate in our project in terms of joint ventures, or participate in the company,” he commented.

These groups included end users from the automotive sector, and “quasi-government” companies from countries like China, Japan, Korea, as well as European nations.

Harwood said that the Wigu Hill orebody is similar to Molycorp’s Mountain Pass mine in California.
http://www.miningweekly.com/article/...ceo-2011-06-09

[kiligoland]

some good news, hope they bring sth to our nation

[EspenolRoc]

Great

[kiligoland]

EAC economies take a knock, Tanzania still looking good


Tanzania is expected to weather growing economic challenges affecting the region in the fourth quarter of 2011 better than Kenya and Uganda, making it a more attractive destination for investors.

Related Stories

Kenyan Bill proposes stiff penalties for poaching
The first half of 2011 delivered some unexpected shocks that have severely disrupted the pace of the economic recovery, with a heavy impact on the performance of currencies in Uganda, Kenya, Tanzania and Rwanda but the re-emergence of financial tensions in the Eurozone appears a biggest risk.

The spillover effects of a gloomy forecast on global growth, the recent downgrade of US government debt, the unrelenting crisis in the oil-rich Arab world and continuing worries about the European debt crisis continue to shake the five economies.

At least three listings are set for the Dar es Salaam Stock Exchange (DSE) by the end of the year, which could attract investments at the bourse.

The DSE has been the best performing stockmarket in the EAC, up 9.8 per cent while the Nairobi Stock Exchange and Uganda Stock Exchange are down 23 per cent and 17 per cent respectively.

Tanzania’s rate of inflation has risen more slowly than its neighbours, thanks to a surplus of agricultural commodities such as maize and other grains when there is scarcity across its borders due to drought and distribution constraints.

And its currency is holding up better in trading against the dollar than Kenya’s and Uganda’s, easing the pressure on imported inflation, especially on oil.

“It is tough times across the region,” said Ken Kaniu an analyst with Stanbic Investment Management Services. “But Tanzanian might end up doing better than Kenya and Uganda.”

The fund manager last week released its economic update for Kenya and Uganda where it identified key challenges facing the region as double-digit inflation, volatile local currencies and depressed activity at the stockmarket.

The analysts though expect inflation across the region to ease off in coming months as farmers begin to harvest their crop and bring it into the market and also as global oil prices fall on reduced demand.

Kenya’s inflation rate hit 16.67 per cent and Uganda’s stood at 21.4 per cent in August, with the Kenya shilling facing its worst pressure in two decades.

“We have to take some action toward that end, basically just to ensure that we restore some kind of stability on the monetary side. Inflation numbers are definitely out of the range we had originally predicted,” said Kenya’s Finance Minister Uhuru Kenyatta a fortnight ago. “We are in discussions with the Central Bank to deal with this issue to ensure stability and normalcy returns.”

But Tanzania reported a slower acceleration of price with inflation at 13 per cent.

“Though it is an expensive place, the prices have remained relatively stable,” said Job Ongeri, a Kenyan accountant living in Dar es Salaam.

Tanzania’s currency has lost only seven per cent to the dollar to trade at Tsh1,630. Uganda’s shilling has been the hardest hit – being landlocked, it has to bear the brunt of increased costs, losing around 18 per cent to exchange at Ush2,818.

http://www.theeastafrican.co.ke/busi...t/-/index.html

[kiligoland]

NDC, Chinese firm in 4.8trl/- deal

AT last the National Development Corporation (NDC) has signed a US $3 billion (about 4.8trl/-) joint venture agreement with China's Sichuan Hongda Group for development of Liganga iron ore and Mchuchuma coal mines.

The two projects are so far the largest private sector led investments in the East African region.

The Vice-President, Dr Mohamed Gharib Bilal, witnessed the historic signing ceremony in Dar es Salaam on Wednesday, noting that the projects will usher in a new era in extractive industry.

"We expect the twin projects to provide more reliable electric power and unlock the country's mineral potential particularly in the extractive metallurgy," Dr Bilal said.

Adding; "I would like to emphasise to the two parties to the venture that Tanzania looks forward to successful and expeditious implementation of the projects."

The NDC Board Chairman, Dr Chrisant Mzindakaya, signed the agreement with his counterpart, Mr Liu Canglong of Sichuan Hongda Group. Under the agreement, a company called Tanzania China International Mineral Resources Limited has been formed to implement the projects.

The Industry and Trade Minister, Dr Cyril Chami, said the Chinese company controls 80 per cent stake in the new firm whereas NDC remains with 20 per cent of the shares.

"An article in the agreement provides, however, that NDC could increase its shares to 49 per cent after the Chinese company has recovered costs of investment," Dr Chami explained.

The VP stressed in his speech that iron ore from Liganga should lead to production of iron and steel and the ultimate growth of steel industry.

He added that production of power from coal at Mchuchuma as well as iron and steel from Liganga will play a crucial role in development of key infrastructure including the Mtwara port, Mtwara-Mchuchuma/Liganga railway and power transmission lines.

Upon its completion, the Mchuchuma coal-power plant is expected to generate 600MW of which 300MW will be used at the two mines with the remaining power supplied to the national grid.

"I expect NDC and other relevant authorities responsible for such infrastructure will draw out a strategy and plan for action to ensure that such infrastructure is developed in a synchronized fashion so as to maximize benefits from exploitation of resources at the mines.

"This will definitely make the long envisioned Mtwara corridor a reality and a bustling economic region in Tanzania," the VP said.

For his part, Dr Chami said signing of the joint venture is a big step ahead towards achieving the Tanzania Development Vision 2025 of transforming the economy from low productivity agriculture to a modern and competitive semi-industrialised economy.

"Implementing the Liganga project will provide raw materials to downstream metal industries and construction sector. It will also stimulate establishment of other metal or related industries," the minister remarked.

He said iron and steel industry are one of the most energy intensive sectors but noted that with parallel implementation of the Mchuchuma project, the solution to power supply will be provided.

According to Dr Mzindakaya, some 48 companies in the world had expressed interest to develop the project but it was the Chinese firm which emerged the winner.

"Sichuan Hongda was selected mostly because of its competence and technology to undertake such projects," he explained.

Mr Canglong said the decision to invest in Tanzania was because of the longstanding friendship between the two countries, political stability and favourable investment climate. He said the two projects will upon completion employ some 8,000 people directly.

http://dailynews.co.tz/home/?n=23853&cat=home

[tanzan]

Originally Posted by kiligoland

NDC, Chinese firm in 4.8trl/- deal

AT last the National Development Corporation (NDC) has signed a US $3 billion (about 4.8trl/-) joint venture agreement with China's Sichuan Hongda Group for development of Liganga iron ore and Mchuchuma coal mines.

The two projects are so far the largest private sector led investments in the East African region.

The Vice-President, Dr Mohamed Gharib Bilal, witnessed the historic signing ceremony in Dar es Salaam on Wednesday, noting that the projects will usher in a new era in extractive industry.

"We expect the twin projects to provide more reliable electric power and unlock the country's mineral potential particularly in the extractive metallurgy," Dr Bilal said.

Adding; "I would like to emphasise to the two parties to the venture that Tanzania looks forward to successful and expeditious implementation of the projects."

The NDC Board Chairman, Dr Chrisant Mzindakaya, signed the agreement with his counterpart, Mr Liu Canglong of Sichuan Hongda Group. Under the agreement, a company called Tanzania China International Mineral Resources Limited has been formed to implement the projects.

The Industry and Trade Minister, Dr Cyril Chami, said the Chinese company controls 80 per cent stake in the new firm whereas NDC remains with 20 per cent of the shares.

"An article in the agreement provides, however, that NDC could increase its shares to 49 per cent after the Chinese company has recovered costs of investment," Dr Chami explained.

The VP stressed in his speech that iron ore from Liganga should lead to production of iron and steel and the ultimate growth of steel industry.

He added that production of power from coal at Mchuchuma as well as iron and steel from Liganga will play a crucial role in development of key infrastructure including the Mtwara port, Mtwara-Mchuchuma/Liganga railway and power transmission lines.

Upon its completion, the Mchuchuma coal-power plant is expected to generate 600MW of which 300MW will be used at the two mines with the remaining power supplied to the national grid.

"I expect NDC and other relevant authorities responsible for such infrastructure will draw out a strategy and plan for action to ensure that such infrastructure is developed in a synchronized fashion so as to maximize benefits from exploitation of resources at the mines.

"This will definitely make the long envisioned Mtwara corridor a reality and a bustling economic region in Tanzania," the VP said.

For his part, Dr Chami said signing of the joint venture is a big step ahead towards achieving the Tanzania Development Vision 2025 of transforming the economy from low productivity agriculture to a modern and competitive semi-industrialised economy.

"Implementing the Liganga project will provide raw materials to downstream metal industries and construction sector. It will also stimulate establishment of other metal or related industries," the minister remarked.

He said iron and steel industry are one of the most energy intensive sectors but noted that with parallel implementation of the Mchuchuma project, the solution to power supply will be provided.

According to Dr Mzindakaya, some 48 companies in the world had expressed interest to develop the project but it was the Chinese firm which emerged the winner.

"Sichuan Hongda was selected mostly because of its competence and technology to undertake such projects," he explained.

Mr Canglong said the decision to invest in Tanzania was because of the longstanding friendship between the two countries, political stability and favourable investment climate. He said the two projects will upon completion employ some 8,000 people directly.

http://dailynews.co.tz/home/?n=23853&cat=home

this will change steel industry for sure

[kiligoland]

Originally Posted by tanzan

this will change steel industry for sure

and TWIGA MZEMBE, Nimeona signature ya mtu kule jf Dar es salaam imekuwa Dark salaam, na Tanzania Imekua Tanzagiza.

[xJamaax]

Originally Posted by kiligoland

EAC economies take a knock, Tanzania still looking good


Tanzania is expected to weather growing economic challenges affecting the region in the fourth quarter of 2011 better than Kenya and Uganda, making it a more attractive destination for investors.

Related Stories

Kenyan Bill proposes stiff penalties for poaching
The first half of 2011 delivered some unexpected shocks that have severely disrupted the pace of the economic recovery, with a heavy impact on the performance of currencies in Uganda, Kenya, Tanzania and Rwanda but the re-emergence of financial tensions in the Eurozone appears a biggest risk.

The spillover effects of a gloomy forecast on global growth, the recent downgrade of US government debt, the unrelenting crisis in the oil-rich Arab world and continuing worries about the European debt crisis continue to shake the five economies.

At least three listings are set for the Dar es Salaam Stock Exchange (DSE) by the end of the year, which could attract investments at the bourse.

The DSE has been the best performing stockmarket in the EAC, up 9.8 per cent while the Nairobi Stock Exchange and Uganda Stock Exchange are down 23 per cent and 17 per cent respectively.

Tanzania’s rate of inflation has risen more slowly than its neighbours, thanks to a surplus of agricultural commodities such as maize and other grains when there is scarcity across its borders due to drought and distribution constraints.

And its currency is holding up better in trading against the dollar than Kenya’s and Uganda’s, easing the pressure on imported inflation, especially on oil.

“It is tough times across the region,” said Ken Kaniu an analyst with Stanbic Investment Management Services. “But Tanzanian might end up doing better than Kenya and Uganda.”

The fund manager last week released its economic update for Kenya and Uganda where it identified key challenges facing the region as double-digit inflation, volatile local currencies and depressed activity at the stockmarket.

The analysts though expect inflation across the region to ease off in coming months as farmers begin to harvest their crop and bring it into the market and also as global oil prices fall on reduced demand.

Kenya’s inflation rate hit 16.67 per cent and Uganda’s stood at 21.4 per cent in August, with the Kenya shilling facing its worst pressure in two decades.

“We have to take some action toward that end, basically just to ensure that we restore some kind of stability on the monetary side. Inflation numbers are definitely out of the range we had originally predicted,” said Kenya’s Finance Minister Uhuru Kenyatta a fortnight ago. “We are in discussions with the Central Bank to deal with this issue to ensure stability and normalcy returns.”

But Tanzania reported a slower acceleration of price with inflation at 13 per cent.

“Though it is an expensive place, the prices have remained relatively stable,” said Job Ongeri, a Kenyan accountant living in Dar es Salaam.

Tanzania’s currency has lost only seven per cent to the dollar to trade at Tsh1,630. Uganda’s shilling has been the hardest hit – being landlocked, it has to bear the brunt of increased costs, losing around 18 per cent to exchange at Ush2,818.

http://www.theeastafrican.co.ke/busi...t/-/index.html

Bad times for Kenya indeed!I think we may do better after next year.

[tanzan]

Originally Posted by kiligoland

and TWIGA MZEMBE, Nimeona signature ya mtu kule jf Dar es salaam imekuwa Dark salaam, na Tanzania Imekua Tanzagiza.

wee acha tuu! NOMAA!

wanajua what will happen to them in 2015 thats why unaona wanafanya frantic efforts kuleta megawatt 500 na by December...

[tanzan]

Originally Posted by kiligoland

some good news, hope they bring sth to our nation

We need more BIG good news

We need to think BIG, cut BIG deals, BIG solutions and get away from these small ideas of reducing poverty,reducing traffic congestion,reducing this and that! and this is the problem...many in govt position think like this.

[bantugbro]

Tanzania, China seal 532km gas pipeline deal
BY LYDIA SHEKIGHENDA
30th September 2011

Two gas processing plants generating 3900MW also expected to be constructed
Government contemplating steps to take after court ruling on award to Dowans


Energy and Minerals minister William Ngeleja briefs journalists in Dar es Salaam yesterday on plans to generate 3,900 MW using natural gas. To his right is the ministry’s permanent secretary, Eliakim Maswi.

Tanzania and China have signed a USD1.0 billion agreement for the construction of a 532-km gas pipeline from Mnazi Bay and Songo Songo to Dar es Salaam in efforts to ease power shortage in the country.
The pact also involves the construction of two gas processing plants able to generate 3,900 megawatts.
Energy and Minerals minister William Ngeleja told journalists in Dar es Salaam yesterday that the contract was signed in Beijing on Tuesday after the government of Tanzania convinced China’s Exim Bank to provide it with a soft loan.
He said Tanzania will contribute one-tenth of the total cost, with the Chinese government covering the remaining 90 per cent, adding that implementation of the Engineering, Procurement and Construction (EPC) pact envisages increased production of gas to be used in generating power in the country.
According to the minister, the project will be implemented in two phases – the first involving the construction of a 24-inch gas cylinder for the 25km from Songo Songo Island to Somanga Fungu in Kilwa District and a 36-inch gas pipeline for the 207 km from Somanga Fungu to Dar es Salaam.
He said the second phase would meanwhile entail the construction of a 36-inch gas pipeline for the 285km from Mnazi Bay to Somanga Fungu.
He noted that preparations for the implementation of the project would start in the second week of next month, with experts from the China Petroleum Technology and Development Corporation (CPTDC) conducting a feasibility study.
“Experts from (Tanzania’s) Ardhi University have started carrying out Environment and Social Impact Assessment in the areas where the gas pipeline will pass. The government has already set aside 6.5bn/- for use by the Tanzania Petroleum Development Corporation (TPDC) in implementing the work, including compensating people who will be affected by the project,” explained Ngeleja.
He said the project was officially scheduled for completion by March 2013 but owing to the seriousness of the power crisis facing the county, the government had requested CPTDC to speed up the construction and have the project done by December 2012.
“The completion of the project will enable the 36-inch gas cylinder to produce 784 million standard cubic feet of gas per day capable of powering 3,900 MW,” he said.
He also pointed out that the new demand for power generated from natural gas is estimated to reach 1,583MW by 2015, adding that the current demand countrywide does not exceed 1,000MW.
The minister also noted that all that Tanzania currently has is a 16-inch pipeline capable of transporting 105 million standard cubic feet of gas per day.
He said that infrastructure for the project will be wholly owned by the government through TPDC.
Meanwhile, minister Ngeleja said the government is contemplating measures to take after receiving an official report on the High Court decision to register a 94bn/- award settlement applied for by Dowans Holding SA and Dowans Tanzania Limited against the Tanzania Electric Supply Company (Tanesco).
“I have just read the news in the media and I am waiting for the official report to reach my table and, as a government, we will thereafter decide what to do next,” he said.
On Wednesday the High Court registered the hotly contested 94bn/- award settlement applied for by Dowans Holding SA and Dowans Tanzania Limited against Tanesco, bringing to the fore the issue of who would pay the hefty amount of money.
The High Court threw out an objection filed by Tanesco against the registration of the award. It also ordered Tanesco to pay the cost Dowans incurred on the case.
Source:
www.ippmedia.com

[kiligoland]

this is great, just waiting tutawasha umeme hadi kwenye matendegu kama jk alivyosema

[bantugbro]

Originally Posted by kiligoland

this is great, just waiting tutawasha umeme hadi kwenye matendegu kama jk alivyosema

So many mega projects have been signed this year...

[tanzan]

Originally Posted by bantugbro

Tanzania, China seal 532km gas pipeline deal
BY LYDIA SHEKIGHENDA
30th September 2011

Two gas processing plants generating 3900MW also expected to be constructed
Government contemplating steps to take after court ruling on award to Dowans


Energy and Minerals minister William Ngeleja briefs journalists in Dar es Salaam yesterday on plans to generate 3,900 MW using natural gas. To his right is the ministry’s permanent secretary, Eliakim Maswi.

Tanzania and China have signed a USD1.0 billion agreement for the construction of a 532-km gas pipeline from Mnazi Bay and Songo Songo to Dar es Salaam in efforts to ease power shortage in the country.
The pact also involves the construction of two gas processing plants able to generate 3,900 megawatts.
Energy and Minerals minister William Ngeleja told journalists in Dar es Salaam yesterday that the contract was signed in Beijing on Tuesday after the government of Tanzania convinced China’s Exim Bank to provide it with a soft loan.
He said Tanzania will contribute one-tenth of the total cost, with the Chinese government covering the remaining 90 per cent, adding that implementation of the Engineering, Procurement and Construction (EPC) pact envisages increased production of gas to be used in generating power in the country.
According to the minister, the project will be implemented in two phases – the first involving the construction of a 24-inch gas cylinder for the 25km from Songo Songo Island to Somanga Fungu in Kilwa District and a 36-inch gas pipeline for the 207 km from Somanga Fungu to Dar es Salaam.
He said the second phase would meanwhile entail the construction of a 36-inch gas pipeline for the 285km from Mnazi Bay to Somanga Fungu.
He noted that preparations for the implementation of the project would start in the second week of next month, with experts from the China Petroleum Technology and Development Corporation (CPTDC) conducting a feasibility study.
“Experts from (Tanzania’s) Ardhi University have started carrying out Environment and Social Impact Assessment in the areas where the gas pipeline will pass. The government has already set aside 6.5bn/- for use by the Tanzania Petroleum Development Corporation (TPDC) in implementing the work, including compensating people who will be affected by the project,” explained Ngeleja.
He said the project was officially scheduled for completion by March 2013 but owing to the seriousness of the power crisis facing the county, the government had requested CPTDC to speed up the construction and have the project done by December 2012.
“The completion of the project will enable the 36-inch gas cylinder to produce 784 million standard cubic feet of gas per day capable of powering 3,900 MW,” he said.
He also pointed out that the new demand for power generated from natural gas is estimated to reach 1,583MW by 2015, adding that the current demand countrywide does not exceed 1,000MW.
The minister also noted that all that Tanzania currently has is a 16-inch pipeline capable of transporting 105 million standard cubic feet of gas per day.
He said that infrastructure for the project will be wholly owned by the government through TPDC.
Meanwhile, minister Ngeleja said the government is contemplating measures to take after receiving an official report on the High Court decision to register a 94bn/- award settlement applied for by Dowans Holding SA and Dowans Tanzania Limited against the Tanzania Electric Supply Company (Tanesco).
“I have just read the news in the media and I am waiting for the official report to reach my table and, as a government, we will thereafter decide what to do next,” he said.
On Wednesday the High Court registered the hotly contested 94bn/- award settlement applied for by Dowans Holding SA and Dowans Tanzania Limited against Tanesco, bringing to the fore the issue of who would pay the hefty amount of money.
The High Court threw out an objection filed by Tanesco against the registration of the award. It also ordered Tanesco to pay the cost Dowans incurred on the case.
Source:
www.ippmedia.com