Energy & Mining

MASSIVE FUEL LOSSES IN DAR PORT ALARM REGULATOR
The country has continued to suffer massive pipeline fuel losses, alarming the regulators who are now calling for urgent solution to stop the ...
The country has continued to suffer massive pipeline fuel losses, alarming the regulators who are now calling for urgent solution to stop the negative trend.
This comes in the wake of a recent report that around two million liters of fuel were lost when two vessels discharged fuel at the Single Point Mooring (SPM) recently.
A letter by the Petroleum Importation Co-ordinator (PIC) dated March 2 to oil terminal owners signed by its General Manager Michael Mjinja said that there has been an excessive pipeline fuel losses during ship to shore discharge through the SPM.
 “Our joint surveyor indicated in their report that considering the loss with MT Maersk Prosper and MT Front Lion, they feel that there must be tempering being done somewhere along the line”, the report said.
The letter was also copied to the Permanent Secretary, Ministry of Energy and Minerals and the Energy and Water Regulatory Authority (EWURA).
The PIC chief said that it is too risky to use the same line for another vessel without finding solution to the existing problem.
It was reported a few weeks ago that the oil marketing companies were accused of indulging in massive thefts of imported petroleum worth Sh18 billion annually.
The report released by a Special Committee of Oil Marketing companies and Stakeholders under Bulk Oil Procurement System (BPS), it was found that there are three areas for occurrences of losses, one being from vessels themselves.
Other areas include from pipeline system linked with vessels to many terminals and the storage terminals which have loopholes from thefts and unnoticed leakages of petroleum. This means that final consumer of oil bears the burden of such huge losses.
Under the study done by a Committee set up by PIC, the committee found that Tanzanians incurred a loss of 30,000 metric tonnes of fuel worth $28 million.
The Government introduced the bulk procurement system in order to improve import system.
Under the new system, a number of achievements have been recorded such as a significant reduction of vessel waiting time, thus bringing down demurrage costs which have positively impacted on premiums going down as well.
The report shows that losses have reduced slightly but still remain high costing the industry and ultimately the end user. Some vessels have discharged with a loss of 2.6 percent which is way over the acceptable levels.
“New pipe work and manifolds have been installed without proper planning. Storage tanks at some terminals are not calibrated accurately, have malfunctioning valves, and even the mishandling of valves”, the report said.
The report also shows that most of the valves connected in the discharge system of the terminals are loose, causing leakage of oil regular discharges of water that in turn causes theft of petroleum.
The report has further revealed incidences of ineffective safety and security that have contributed significantly to huge losses of petroleum.
The report gives out several recommendations to improve the BPS, one being to emulate Kenyan system whereby there is only one petroleum storage, discharge and distribution system.
The report says that this will assist Tanzania Revenue Authority (TRA) to collect the correct revenues and taxes from fuel.
Secondly, the committee recommend that stakeholders have to establish a joint security company and that a joint agreement between Tanzania Ports Authority (TPA) and TIPER on the security and operations of storage and pipeline system must be signed.
Other recommendations include; installation of electronic monitoring system for entire pipeline system which can be shared by oil marketing companies, TPA and TIPER, PIC must appoint a consultant to audit performance of inspectors and terminals.
Other suggestions require PIC to arrange training on petroleum losses and EWURA should deploy a consultant for advising on putting in place a proper layout of BPS infrastructure.
The special recommendation was also put to Weights and Measure Agency (WMA) that they should not calibrate and verify tanks, but they should remain as verifiers.
 This WMA proposal has been put forward because several tanks were found without calibration allowing for inaccurate measurement of product.

HEINEKEN ALL SET TO THROW MASSIVE UEFA CHAMPIONS LEAGUE FINALE

Who will win? That’s the big question on every football fan mind. With only two days left to the epic finale between FC Juventus and FC Barcelona ...
Who will win? That’s the big question on every football fan mind. With only two days left to the epic finale between FC Juventus and FC Barcelona…your guess is as good as the next.
Premium beer brewer, Heineken Tanzania will this Saturday treat its consumers to massive UEFA finals viewing galas at all Samaki Samaki outlets in Dar es Salaam.
Besides Samaki Samaki viewing hubs, Heineken has also lined up viewing bashes at other football loving outlets upcountry and in Mwanza. These include George n Dragon pub where there will also be entertainment with top DJs top Dj FU will spinning the disks, while in Kawe there will be a bash at Club 777.
Speaking on the upcoming UEFA Champions League Finals, Heineken Tanzania Trade Manager John Dandi said all preparations for the annual UEFA Champions League Final viewing parties are on schedule and they expect a massive turn out from football fans and socialites alike from across Tanzania.
 “This time around we are hosting five main viewing bashes in Dar es Salaam alone, while we have selected outlets upcountry to give more people the opportunity to watch the epic final in style,” he added.
In Arusha Milestones, Rainbow BAR Dodoma, Nyumbani Park and Vibe Bar and Lounge in Morogoro will also host viewing parties while in Mwanza, JB Belmont Pub will be the place.
The UEFA champion’s league is Europe’s most prestigious league with Heineken international as a proud sponsor. The UEFA finals that pit Barcelona against Juventus will be played this Saturday and Heineken will treat its consumers to a viewing event where their premium beer will be sold at reduced prices.
Heineken Tanzania has been supporting the UEFA league viewings with a campaign “Champion The Match” which kicked off in April and saw lucky consumers win themselves a VIP treat to watch the matches in style.


LSK backs cancellation of mine licences

 
Mining secretary Najib Balala (left) and Law Society of Kenya chairman Eric Mutua at the American Bar Association 2015 Africa forum on extractive industries in Nairobi on June 4, 2015. PHOTO | DIANA NGILA
Mining secretary Najib Balala (left) and Law Society of Kenya chairman Eric Mutua at the American Bar Association 2015 Africa forum on extractive industries in Nairobi on June 4, 2015. PHOTO | DIANA NGILA 
By NEVILLE OTUKI, notuki@ke.nationmedia.com
In Summary
  • LSK says the decision in April by Mining secretary Najib Balala to revoke 65 mining licences over non-compliance was good for the industry, “which had been infiltrated by speculators.”
  • Mr Balala in April revoked mineral exploration licences for 65 firms over breaches of industry regulations while others had not been renewed after expiry.

Mining secretary Najib Balala on Thursday won crucial backing in his battle with a number of firms over cancelled licences after the Law Society of Kenya (LSK) said the minister had acted in the best interest of the country.
LSK chairman Eric Mutua said the decision in April by Mr Balala to revoke 65 mining licences over non-compliance was good for the industry, “which had been infiltrated by speculators.”
Mr Mutua, however, asked the government to give the companies a fair hearing to avoid expensive legal suits.
“Intermediaries or agents are known to be corrupt and obtain licences to sell or transfer to investors — we support the cancellation so that the country can start afresh,” Mr Mutua said at the opening of the American Bar Association 2015 Africa forum in Nairobi.
The forum aims to provide insight into legal policies and frameworks in the energy and extractive industries in East Africa.
Mr Balala in April revoked mineral exploration licences for 65 firms over breaches of industry regulations while others had not been renewed after expiry. The cancellation left about 4.5 million acres of land available for exploration, according to the ministry.
Mr Balala said on Thursday that the affected companies had been given 30 days to respond to notices before the cancellation in line with the law.
The firms were to present their financial status and verify that actual work was ongoing in the minefields.
Mr Balala said only three firms have contested the revocations, including Mid Migori and Red Rock Resources PLc.
In August 2013, Mr Balala cancelled another set of licences, including that for Cortec Mining Company which took him to court in protest. The High Court upheld the revocation.
He said the enforcement of the Mining Bill 2014, which is awaiting the Senate’s approval, is set to streamline and boost the underperforming industry which accounts for a paltry one per cent of the country’s output.  The sector contributes about four per cent of Kenya’s exports.
“This GDP contribution is expected to rise significantly to three per cent by 2018 and contribution to export earnings should rise up to 10 per cent by 2030,” said Mr Balala.
The mining Bill provides that 70 per cent of earnings from royalties be retained by the national government, 20 per cent (county in which the mineral is found) and 10 per cent for communities surrounding the minefields.
Half of the proceeds due to the national government will be funnelled to the proposed Sovereign Wealth Fund that will be used to cushion the economy against shocks associated with sudden massive forex inflows and to store wealth for future generations.
The remaining half will be channelled towards infrastructure development. The national government will also have a 10 per cent stake in large mining ventures. Also to be set up is a proposed National Mining Corporation — the government’s investment arm in the sector.

 “Holders of mining licences are required within four years to list at least 20 per cent of their equity on the local stock exchange. Here is where Kenya’s can participate in the stock market in a transparent manner and companies can raise funds locally,” said Mr Balala.

Gold mining puts $171bn into global economy – World Gold Council
Gold mining puts $171bn into global economy – World Gold Council

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 By: Martin Creamer Creamer Media Editor EMAIL THIS ARTICLE © Reuse this John Mulligan JOHANNESBURG (miningweekly.com) – The global gold mining industry collectively contributed $171.6-billion-plus to the global economy in 2013, which is more than the combined gross domestic product (GDP) of Ecuador, Ghana and Tanzania, or close to half of the GDP of South Africa or Denmark.

The World Gold Council (WGC) report on the social and economic impacts of gold mining, which it produced with international economics consultancy Maxwell Stamp, also found gold mining companies to be a major source of income and economic growth for host countries, with an important role in supporting sustainable socioeconomic development. “This is the culmination of a stream of work to try and quantify the global economic footprint of formal gold mining and some of its social impacts, looking at the common themes across the industry rather than specific case studies,” WGC member and investor relations head John Mulligan told Creamer Media’s Mining Weekly Online in a conference call from London on Wednesday.

Globally, gold mining companies directly employed more than one-million people in 2013, with 4.2-million more people employed as a result of the industry’s suppliers and support services, Mulligan said. The report shows that gold mining has made progress in human capital and skills development and that in most gold producing countries, more than 90% of the industry’s employees are local workers. However, the report indicates that growth in the economic contribution of gold mining often coincides with a marked improvement in income status of host nations. Analysing the impacts of large-scale commercial gold mining in 47 gold producing countries, collectively accounting for more than 90% of the world’s gold production, the report provides greater insight into the benefits of commercial gold mining at global, national and host community levels.

 “Our findings highlight that commercial gold mining is a major source of income and driver of economic growth, playing an important role in supporting the sustainable socioeconomic development of host nations and communities,” Mulligan added. The $171-billion-plus overall contribution is calculated through taking the value created by support services and indirect employment. But even 2013’s direct contribution of $83.1-billion is substantial in that it equals the combined GDP of Ghana and Tanzania.

The report finds that average mineworker salaries are consistently higher than the national average and broader benefits are obtained when training provides skills that are transferable beyond the mine. A macro trend noted is the shift in the geographical location of the gold mining industry’s value creation activities from advanced to less developed economies, where gold mining companies are making significant investments in infrastructure, which has wider benefits for local communities beyond the life of the mine itself. Among some of the smaller producing nations, the gold mining industry has also been found by the study to be very significant for national economies, particularly once the indirect impact of gold mining companies’ procurement is taken into account. Gold mining companies, the report finds, play the important role of value creator and generator of financial resources for governments for development, with strong evidence that the Extractive Industries Transparency Initiative is having a positive impact on revenue reporting in resource-rich countries.

The study found gold mining to consistently pay above-average wages in developed countries and significantly above-average wages in less developed countries, where each worker typically supports a high number of dependants. More than 60% of the countries covered are low-income or lower-middle income countries with substantial socioeconomic development needs. Seventy per cent of the value that gold mining companies distribute within an economy relates to payments to local suppliers and employees. Interestingly, the majority of government revenues from gold mining are derived from sources such as corporate and income tax rather than from money relating to permits and royalties. The social and economic impacts of gold mining also show that gold mining’s direct economic contribution to the global economy has increased seven-fold from 2000 to 2013, which is greater than the rise in value of gold over the same period.

“We hope the report will help foster productive engagement between gold mining companies and the industry’s wider stakeholders,” said Maxwell Stamp’s Andrew Britton. While there has been major progress in recent years in attempting to measure gold mining’s economic impacts, this has often been piecemeal or confined to a specific country. The lack of information has held back constructive debate on how to make the most of the shared value that a responsible gold mining industry can create for host nations and communities. By building on previous research and identifying industry-wide thematic trends, this work has made substantial progress in bridging the information gap, added Britton. Edited by: Creamer Media Reporter  It is our preference that if you wish to share this article with others you should please use the following link:  http://www.miningweekly.com/article/gold-mining-puts-171bn-into-global-economy-world-gold-council

 Junior miners perceive Botswana as best investment destination

3rd June 2015 By: Martin Creamer Creamer Media Editor EMAIL THIS ARTICLE © Reuse this Previous Next Photo by Duane Daws Bernard Swanepoel Instagram Buy Photos JOHANNESBURG (miningweekly.com) – Botswana is the easiest country in which to carry out junior mining activities, a digital vote declared on the first day of the Junior Indaba here on Wednesday.


Botswana received the highest vote from the 160 people attending the conference. Botswana at 42% of the digital vote had double South Africa’s 21%, with Namibia coming in at 16%. During digital voting at the conference chaired by South African mining luminary Bernard Swanepoel, 49% also perceived that South Africa’s legal environment had worsened. More than two-thirds regard the junior mining sector as being overregulated and a third claimed that it was impossible to do “honest” junior mining business in South Africa. Chief Inspector of Mines David Msiza, attending the conference on behalf of Mineral Resources Minister Ngoako Ramatlhodi, expressed regret at the perceptions, which he believed could be dispelled through better communication.

Chamber of Mines of South Africa president Mike Teke emphasised the strategic importance of juniors and Msiza spoke of the need to go back to basics in exploration in South Africa. Anglo American partnership funds investment manager Alugumi Dzebu said that the company’s Zimele programme and the Anglo American Chairman’s Fund were able to assist emerging junior mining companies with early stage exploration funding, normally spurned by financial institutions.

 “We can fund up to R30-million per project with a combination of different instruments,” Dzebu added. Teke reiterated that the South African mining industry was by far the biggest contributor to South Africa’s economy and the reality of mining being cyclical had to be accepted, which meant that the country should be preparing for the upturn. Edited by: Creamer Media Reporter

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