THE government has given the National Development Corporation (NDC) a three-week ultimatum to reach an agreement with an investor at Katewaka Coal Mining Project in Ludewa District, Njombe Region and begin mining operations.

Minister for Industry and Trade, Selemani Jafo issued the order on Monday during his two-day visit where he inspected road infrastructure and the progress of Liganga and Mchuchuma mining and power generation projects.

Jafo said that if no agreement is reached with MM Steel Resource Public Ltd (MMSR) within the timeframe, the government will take appropriate action, including seeking a new investor capable of fast-tracking the project.

“Fortunately, major work had already been completed and research indicates there are ample coal reserves for production. However, some critical issues are still pending,” he said.

He wanted NDC and the investor to meet immediately to resolve the issue for the work to commence, unlocking potential for development.

Jafo also addressed the residents of Nkomang’ombe Ward in the district, assuring them that the government is committed to ensuring Mchuchuma and Liganga projects start promptly, bringing tangible benefits to both the nation and local communities.

“This project has been delayed for years but the government has allocated funds and compensation has been paid. I bring good news that work will begin this year,” he said.

Esther Mwaigomole, NDC Acting Managing Director underscored the project’s importance to the national economy, stressing the need for careful management to ensure it benefits citizens and stimulates industrial development.

“The project is valued at over 3bn/-. During its construction phase, it will create 30,000 jobs, and once operational, it will generate 6,000 permanent jobs,” she said.

Liganga and Mchuchuma project officer Wallu Kapaya explained that delays in the project stemmed from disagreements between the investor and the NDC.

Kapaya clarified that the investor’s dispute over the three percent management fee, to be paid once production begins, had been a significant hurdle, as this is a standard practice in the mining industry.

Ludewa legislator Joseph Kamonga echoed the community’s long-standing desire to see the projects move forward, as local residents are eager to benefit economically.

Njombe District Commissioner Juma Sweda, representing Njombe Regional Commissioner Anthony Mtaka, expressed gratitude to the government for ensuring compensation payments and emphasised that once the project begins, it will help uplift the local community economically and contribute to the region’s growth.