In 2011, Hongda announced a $3 billion investment in coal and iron mining Tanzania, making it the biggest investor in East Africa. Under the deal, a sub-project is to build a major coal plant and supply chain to provide an ample supply of electricity in Tanzania, removing the one of the biggest roadblocks to manufacturing foreign investment. To build Tanzanian power infrastructure, Hongda formed a joint venture with the government of Tanzania named Tanzania China International Mineral Resources (TCIMR). The project plan calls for the building of the Mchuchuma and Katewaka coal to electricity facility, which is expected to be the top capacity plant in the country, producing 600MW at full capacity. The facility is expected to start producing 300MW by 2015.
Allegations of corruption
In 2014, former head of Hanlong Liu Han along with his brother and dozens of other associates, were charged with 9 murders and accused of running a mafia-style operation since 1993. According to state media, Mr Liu's gang also ran a gambling ring in their home town of Guanghan and operated under the protection of local official Zhou Yongkang. Mr Liu was later sentenced to death.
- Garnaut, John (September 15, 2001). "Chinese maze holds Hanlong key". Sydney Morning Herald.
- Ng'wanakilala, Fumbuka (September 22, 2011). "China co signs $3 bln Tanzania coal, iron deal". Reuters.
- Abduel, Elinaza (July 17, 2012). "Plans to Generate Power From Coal in Full Gear". Tanzania Daily News.
- BBC News - Chinese 'mafia-style' gang goes on trial
- The Financial Times - Chinese mining tycoon faces Mafia charges
- BBC News - Chinese tycoon Liu Han sentenced to death for murder