Team of experts formed to probe legal controversy in Coal, iron projects

Dodoma. A team of experts has been formed to look into how to solve a legal controversy that has arisen in the implementation of the Mchuchuma Coal and Liganga Iron projects, the parliament has heard.

The deputy minister of Industry, Trade and Investment, Stella Manyanya revealed this in the National Assembly on Thursday February 8.

Ms Manyanya said the projects have stalled due to conflicting sections in the Joint Venture Agreement and Shareholding Subscription Agreement (SSA), which had been entered into between an investor and the National Development Corporation (NDC) in 2011.

She told parliament that the conflict in the sections of the agreements arose when the parliament made changes in the minerals law of 2010, and establishing two other laws-the Natural Wealth and Resources Permanent Sovereignty Act of 2017 and the Natural Wealth and Resources Contract(Review & Renegotiation of Unconscionable Terms)  Act, 2017.

The deputy minister was responding to a question raised by MP for Ludewa, Deogratius Ngalawa who wanted to know when the Mchuchuma Coal and Liganga Iron projects would be implemented, despite having been part of the Five Year Development Plan(FYDP) of 2016-2021.

Responding on the matter, the deputy minister said a team of experts would come up with a solution to the legal controversy and this would help set a stage for the implementation of the projects.

"I have strong faith that after the conflicting sections of the agreements have been settled, the projects will start as soon as possible, including compensating them accordingly," said the deputy minister of Industry, Trade and Investment.