All Africa reported that Stanbic Bank Tanzania has secured syndicated financing worth USD 3 billion for Mchuchuma Iron Ore and Liganga Coal mining project in Ludewa district in the newly created region of Njombe in Southwestern Tanzania.

According to the statement from Stanbic Bank released to East African Business Week in Dar es Salaam last week, the financing is a joint effort between Stanbic bank and International Commercial Bank of China, among the largest banks in the world.

The statement said that the Stanbic bank and ICBC have joined forces so as to synchronize both banks' competitive advantage, providing necessary expertise in investments of this magnitude. ICBC also holds 20% shares of Standard Bank, which wholly owns Stanbic Tanzania.

The funds have been secured for Tanzania China International Mineral Resources Limited, 80% shares of which are owned by China's Sichuan Hongda and 20% ownership by National Development Corporation.

The statement said that "Stanbic Bank, ICBC and TCMR Tanzania signed an agreement to provide financing worth USD 3 billion to develop the Mchuchuma Iron Ore and Liganga Coal mining projects."

It added the two projects are the single largest investment venture in EA. Implementation of the Mchuchuma project, among other things, aims at improving power output in the country.

Mr Zitto Kabwe Shadow Minister for Finance said recently that "I would like to bring to attention how huge the Mchuchuma Liganga project is to our economy. It will have a great multiplier effect for our economy if well managed, utilized and executed guided by a focused strategy."

According to Mr Zitto, the Mchuchuma Liganga project will have a turnover of USD 1.2 billion per year which is equal to 7.5% of the current GDP and he added the project will create 8,000 direct jobs.

Addressing a rally at Mawengi Ward in Ludewa after launching the 150KW power project in 2011, President Mr Jakaya Kikwete said the two projects would employ 8,000 people during preliminary stages.

Mr Kikwete said the two projects, which are important for development of extractive industries and power generation, will change the economic outlook of the nation as a whole. The National Development Corporation signed a JV agreement with China's Sichuan Hongda Group for development of the projects after a long process of search for investors.

Source - All Africa

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