THE government expects to earn 220bn/-annually in royalties and different taxes from the nation’s graphite industry.
Through the Ministry of Minerals, the
government said over the weekend that the earnings will start flooding
in upon completion of the plant testing and commencement of full
operation at the Mahenge graphite project under the Australian-based
Black Rock mining company.
The Australian firm has also promised to
build the giant graphite mining plant in Ulanga District under the
Mahenge graphite project. The Mahenge project is ranked the world’s
fourth largest graphite resource.
The company has successfully managed to
transport the sample from Black Rock’s Mahenge graphite project, South
of Ifakara, to Lakefield lab in Australia for a second pilot plant. The
consignment was transported by the rail through Tanzania- Zambia Railway
(TAZARA) from Ifakara to Dar es Salaam port.
Speaking during the launch of
transportation of graphite by rail from Ifakara to Dar es Salaam port,
the Eastern Zone mineral officer Theresia Ntuke said the project is
expected to greatly contribute economically to the nation, producing at
least 80,000 tonnes of graphite, annually. She said that the project is
later expected to produce at least 250,000 tonnes, annually.
Ms Ntuke who represented the Deputy
Minister for Minerals, Mr Dotto Biteko, said the project is expected to
contribute three per cent royalty, which is about 14 million US dollar
(over 30bn/-), with the firm also paying about 60 million dollars (about
130bn/-) in taxes.
She put the company’s expected total
royalties and other taxes to 220bn/- per annum, adding that the firm
will also offer 150 permanent jobs to Tanzanians and other indirect
employment. According to Ms Ntuke, the government through the Ministry
of Minerals, promises full support to ensure project progression.
The project is expected to contribute
immensely to the social-economic development of communities living in
Ulanga and neighbouring Kilombero District. Earlier, officials with the
company said Mahenge area has an estimated graphite deposits of about
69.9 million tonnes, which could bring in over 200bn/- in royalties to
the government, annually.
According to Black Rock Chief Executive
Officer John de Vries, the large flake size and high purity of Mahenge
graphite tested to date suggests that it can be applied to the premium
battery market as well as traditional applications.
The non-metallic mineral is considered
as high-demand item, thanks to technological advancements in the world,
its other applications ranging from the manufacturing of pencils to
automobiles, mobile phones and electric cars.
He said the initial testing produced
premium-sized product of 97.5 per cent carbon from a three-stage
flotation cleaning circuit, with a small amount of polishing.
He said SGS processed a 90-tonne sample
from Mahenge and produced 10 tonnes of concentrate that Black Rock is
distributing to potential global customers and partners.
Black Rock has also submitted a draft
Environmental and Social Impact Statement for Mahenge and commenced
development of a resettlement policy framework for residents around the
project area.
Mr De Vries added that the company is determined to demonstrate its ingenuity and perseverance.
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