11trn/- needed for copper processing plant

DAILY NEWS Reporter

TANZANIA needs at least 5bn US dollar (11trl/-) to set up a plant for processing copper concentrates in the country, the Chairman of Tanzania Chamber of Energy and Minerals, Mr Ami Mpungwe has said.

Mr Mpungwe said on Wednesday that mining companies are currently continuing to airlift copper concentrates for processing abroad due to lack of required facilities in the country. He was speaking during the 2016 Tanzania Investment Forum, which took place in Dar es Salaam.

He told participants from different countries including Chief Executive Officers of major mining companies that it is impossible to process copper concentrates in Tanzania at the moment because the process is very expensive and there is no required machines to facilitate the exercise. “It is quite clear that processing copper concentrates is very expensive.

It is difficult to process copper concentrates in the country at the moment because we still need to build up capacity, therefore exporting copper concentrates abroad remains the only option for now,” he said.

However, Mr Mpungwe wanted the public to understand that mining companies do not export mineral sand and instead they take copper concentrates to Japan to undergo required procedures.

In August, this year, President Magufuli told a public rally in Kahama that gold miners should invest in smelters right here in Tanzania instead of “exporting” sands to recover minerals in them that include tin, copper and silver.

They (investors) must now build processing plants in Tanzania to purify the copper concentrates,” he said, adding: “This is because when they export the copper concentrates, the government loses some revenue.” Commenting on the contribution of mining to the country’s economic growth, Mr Mpungwe said the sector is committed and focused at bringing about development in the country.

“We have been paying all required taxes and loyalties and our financial statements are audited by both internal and external auditors, parliament, Controller and Audit General Office (CAG), Tanzania Revenue Authority (TRA) Tanzania Minerals Audit Agency (TMAA) and other agencies,” he said.

He added: “We cannot hide anything because we understand this is best for our country,” Mr Mpungwe said until December 2015, at least 3000 mining companies had been registered and offered mining licences and more than 20,000 Tanzanians are employed in the mining sector.

The sector contributes 4 per cent to the GDP and it is ranked highest in Tanzania for attracting Direct Foreign Investments (FDI).