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[Project] Tanzania - Tanzania Comprehensive National Steel Development Initiative

Lunakz

GA Member
Jun 20, 2025
20
TYPEInfrastructure
BUILDERTanzania
CLIENTTanzania
SITE LOCATIONTanzania
SECTORBusiness
PROJECT NAMETanzania Comprehensive National Steel Development Initiative
PROJECT COST3,105,000,000.00
COMPLETION DATE01/09/2025
PROJECT INFORMATIONTanzania Comprehensive National Steel Development Plan
This plan creates the full industrial backbone for Tanzania's steel sector by:
  • Localising input production
  • Creating over 110,550 direct jobs and 535,900 indirect/ripple jobs
  • Significantly reducing import dependency on key resources.
  • Boosting national value chains from mining to manufacturing

Industries Targeted:
  • Steel
  • Coking Coal & Metallurgical Coal
  • Alloying materials (Mn, Ni, Cr)
  • Limestone & quarrying
  • Industrial machinery/tooling fabrication
  • Industrial gases (O₂, N₂, Argon)
  • Skilled metallurgical labour
  • Steel scrap collection & recycling

Total combined cost of all sub-projects: $3,105,000,000 (Adjusted for PPP)

Steel
Four steel plants built across Tanzania to produce a total target of 3.0M tonnes/year

Integrated Steel Plant (ISP)
Construction of two ISP’s, one in Mbeya, one in Tanga

Production Capacity:
1.2 million tonnes/year finished steel each
Products: rebar, wire rod, structural sections, hot-rolled coil (HRC)

Plant Units & Facilities:
  • Raw Material Yard
  • Sinter Plant
  • Coke Oven Plant
  • Blast Furnace (BF)
  • Basic Oxygen Furnace (BOF)
  • Secondary Refining Unit (LF/RH)
  • Continuous Casting Machine
  • Rolling Mills
  • Captive Power Plant - 100 to 150 MW (coal and hydro hybrid)
  • Water Treatment Plant
  • Rail Spur & Logistics Zone

Mini Steel Plants (MSP)
Construction of two, one in Morogoro, one in Kigoma

Production Capacity:
300,000 tonnes/year each
Focus on long products (rebar, wire rod, angles, flat bars)

Plant Units & Facilities:
  • Electric Arc Furnace (EAF)
  • Induction Furnace
  • Ladle Refining Furnace
  • Continuous Casting
  • Re-rolling Mill
  • Scrap Yard & Sorting
  • Captive Substation - 25 to 40 MW electrical capacity
  • Water Treatment & Cooling

Estimated Jobs Created:
Direct: 6,700
Indirect: 12,000
Ripple: 11,500

Total Cost: $2,200,000,000

Coking Coal & Metallurgical Coal
Development of coking coal mines in the Ruvuma province.
Construction of a coal beneficiation & coking plant in Songea.


Construction Specifications:
  • Coal Preparation Plant (CPP) (1M tonnes/year)
  • By-product recovery plant (tar, ammonia)
  • Small captive power station (25MW) using off-gas

Estimated Jobs Created:
Direct: 1,200
Indirect: 2,000
Ripple: 1,500

Total Cost: $180,000,000

Alloying Materials
Development of an alloy processing plant for blending and packaging in Dodoma
Mining of Mn/Cr not currently viable domestically. Focus on processing imported ores.


Construction Specifications:
  • Blending & packaging facility (25,000 tonnes/year)
  • On-site assaying lab, silos, and conveyor-fed hopper system

Estimated Jobs Created:
Direct: 250
Indirect: 400
Ripple: 300

Total Cost: $40,000,000

Limestone & Quarry Expansion
Upgrade of limestone quarries in Tanga, Lindi and Mbeya
Installation of on-site crushing & calcination plants


Construction Specifications:
  • Crushing plant (500,000 tonnes/year)
  • Vertical shaft kilns for calcined lime
  • Weighbridge, belt conveyors, dust control

Estimated Jobs Created:
Direct: 600
Indirect: 1,200
Ripple: 800


Total Cost: $75,000,000

Heavy Machinery & Industrial Tooling Fabrication
Development of a Heavy Engineering Industrial Park in Kibaha.
Capacity to house 280 industries.


Construction Specifications:
10km2 industrial park with:
  • Metal cutting, forging & casting workshops
  • Tool and dye workshops
  • Assembly lines for rolling mill & mining equipment
  • On-site technical training centre

Estimated Jobs Created:
Direct: 100,000
Indirect/Ripple: 500,000


Total Cost: $320,000,000

Industrial Gases
Development of two Air Separation Units (ASUs): one in Tanga, one in Mbeya

Construction Specifications:
  • Cryogenic distillation, storage tanks, cylinder filling stations
  • Each ASU to produce:

    [*]25,000 m³/hr oxygen
    [*]20,000 m³/hr nitrogen
    [*]Argon & CO₂ recovery

Estimated Jobs Created:
Direct: 300
Indirect: 500
Ripple: 400


Total Cost: $110,000,000

Skilled Labour & Metallurgy Training Infrastructure
Upgrade University of Dar es Salaam (UDSM) and Mbeya University of Science and Technology.
Construction of 3 new National Metallurgical & Industrial Training Institutes (NMITIs) in Dar es Salaam, Mwanza and Mbeya.
Increase student enrolment capacity by 2,950 students per year in relevant programs.


Construction Specifications:
  • Dormitories, labs, machine shops, metallurgy test furnaces
  • Modern CAD/CAM classrooms and simulation systems

Estimated Jobs Created:
Direct: 500
Indirect: 1,000
Ripple: 800


Total Cost: $120,000,000

Steel Scrap Collection & Recycling Network
Formalise scrap collection with 15 regional collection centres and a national steel scrap marketplace platform


Construction Specifications:
  • Sorting sheds, weighbridges, cutting equipment
  • Integration with mobile payment & tracking

Estimated Jobs Created:
Direct: 1,000
Indirect: 2,000
Ripple: 1,500


Total Cost: $60,000,000
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