By Mkinga Mkinga,The Citizen Reporter
In Summary
Dar es Salaam. The government
has decided to take over four private mining firms and place them under
the charge of the State Mining Corporation Stamico).
The energy and minerals deputy minister, Mr Stephen Masele, told The Citizen
in an exclusive interview that the firms are Biharamulo Gold mine,
formerly owned by African Barrick Gold, Buckreef Gold Mine in Geita
Region and Tanzanite One and Kiwira.
He said Stamico will run them through a newly
established company, StamiGold, expressing optimism that it is poised
to record big success in the sector and make signifcant contributions to
State coffers.
Mr Masele explained that Buckreef was currently processing an Environmental Impact Assessment and mining licence.
Tanzanite One was operational and was being
co-managed by a joint technical board that approved expenditure and
other important decisions, he added.
He said the Kiwira coal mine project was operational and was making final preparations for generating 6MW for a start.
The figure is anticipated to rise to 200 MW, the
deputy minister explained further, adding that, tenders for public
private partnership were being processed and would be floated soon. He
said Kiwira’s underground mine would be expanded to double its capacity
to 300,000 tonnes from the current 150,000 tonnes of coal to be used in
generating power.
“There will be also an open cast mine that will be
constructed with a capacity to produce 1.5 million tonnes of coal.
Producing 200MW of electricity requires this amount of coal,” Mr Masele
said
State Mining Corporation (Stamico) is a
state-owned enterprise established in 1972 under the Public Corporation
Act, 1969 with a mandate of developing mining industry in Tanzania.
On why Stamico had taken up some pits in which
giant firms had ceased to have an interest, Mr Masele explained that,
while the giants considered them unprofitable, they would be beneficial
to Stamico.
“Take the example of Biharamulo Gold Mine,
formerly known as Tulawaka. It has about 100,000 ounces left, for
which a giant company like African Barrick Gold finds the operational
costs unduly high, but for which Stamico will make a profit,” the
deputy minister said.
Stamico signed an agreement for development of the
project in the year 2011 with Tanzania American International
Development Corporation Limited (TANZAM 2000), a subsidiary of Canada’s
Tanzania Royalty Exploration Corporation.
Tanzam 2000 is the majority shareholder with a 55 per cent stake.
He said if things go well, Stamico would make a
net profit of sh7billion during the next two and a half years from
Biharamulo Gold Mine
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