Tata Chem puts Tanzanian JV on hold

NEW DELHI: TATA Chemicals, which had planned to set up a soda ash manufacturing plant, in joint venture with the Tanzanian government with an investment of around $500 million, has decided to put the project on hold in the face of opposition from environmentalists.

���As far as we (Tata Chemicals) are concerned until they (Tanzania Government) come back to us, we are not coming (to
Tanzania),��� Tata Chemicals vice-chairman R Gopalakrishnan said.

Tata Chemicals had formed a joint venture ���Lake Natron Resources��� with the Tanzanian government for exploring the possibility of setting up a soda ash manufacturing plant there which was opposed by environmentalists, who argued that the proposed plant may affect flamingos bird population there and affect the mineral balance of the Lake Natron.

The Tanzanian government responded to it by shifting the location of plant 35 kilometers away from the lakeshore but the move was again opposed by the environmentalists as it comes under the Ramsar wetland area.

���Tanzanian government invited us to come and prospect for soda ash in their Lake Norton Valley. So the joint venture was formed to investigate the possibility of doing so,��� he said. Gopalakrishnan said Tata Chemicals would wait for the Tanzanian government to work on the opposition raised by environmentalists and get a clearance. ���Otherwise we are not coming,��� he added.

The plant was put on hold last year and the government asked the Natron Resources to produce an environment management plan and consider other sites for soda ash extraction.

The company has appointed Noroconsult AS (Norway) to carry out an environmental and social impact study.