Tanzania issues three-week ultimatum for key coal project agreement

Dar es Salaam. The Minister for Industry and Trade, Suleiman Jafo, has given the contractor MM Steel Resources a three-week deadline to finalise an agreement with the National Development Corporation (NDC) to officially commence coal mining activities at the Katewaka Project in Ludewa District, Njombe Region.

Dr Jafo warned that failure to meet the deadline would prompt the government to take necessary action, including seeking a new investor to expedite the project's implementation. He also directed the NDC to conclude negotiations with MM Steel Resources within the same timeframe.

As part of his directives, Dr Jafo instructed the NDC to collaborate with stakeholders from both the Mchuchuma and Katewaka coal projects to construct two new buildings at Nkomang’ombe Primary School, located near the project sites.

During his visit to Njombe Region on 17 February 2025, Dr Jafo assured residents of Nkomang’ombe Village that the government would work closely with them to ensure the project’s timely execution. He emphasised that the project aligns with the government’s broader goals of job creation and economic growth.

“The delay in reaching this agreement is holding back expected benefits such as employment opportunities, industrial growth, and economic advancement for the people of Ludewa and the nation at large,” he said.

The Director of NDC’s Value Addition Department, Esther Mwaigomole, underscored the significance of the project for the national economy, stressing the need for proper management to drive industrial expansion and deliver tangible benefits to the public.

Upon completion, the Katewaka Project is expected to directly employ 6,000 people and indirectly support 24,000 others through the economic supply chain.

The officer for the Liganga and Mchuchuma projects, Mr Wallu Kapaya, attributed the project’s delays to protracted negotiations between MM Steel Resources and the NDC. He cited disagreements over a three per cent management fee—standard industry practice—payable upon commencement of production.

Njombe regional leaders, including Ludewa Member of Parliament Joseph Kamonga, stressed that successful completion of the Katewaka project would be a game-changer for the economy of Ludewa and its neighbouring areas. The government continues to advocate for cooperation between investors and local communities.

The Katewaka coal deposit holds an estimated 100 million tonnes, with an expected annual production of 1.5 million tonnes over a 100-year lifespan. The project is set to generate 1,000 jobs, including 250 direct positions.

Meanwhile, the Mchuchuma coal project, which contains 426 million tonnes of coal and is projected to produce three million tonnes annually, is expected to create 33,000 jobs over its 426-year lifespan.

Acting Regional Commissioner Juma Sweda and Ludewa MP Joseph Kamonga reaffirmed that both projects would play a crucial role in transforming the region’s economy, urging all stakeholders to work towards their swift implementation.