Category Archives: Minerals

Tanzania: The volume of gold export by nation to the world market increase by 69 per cent

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Business and Economic News By Leo Odera Omolo

News emerging from Dar Es Salaam says the volume of gold exports from Tanzania went up by 69.2 per cent to USD 7,480.7 million, following a rise in the export volume, as well as gold price in the world market.

According to the Bank of Tanzania {BOT} the export volume of gold increased to 34.4 tones compared with 29.8 tones recorded in the preceding year, partly on account of commencement of export by the Burwagi Gold Mine in June 2009 while the prices of gold increased to ISD 1,135 per troy ounce compared with USD 1, 35.1 per troy ounce recorded during the year ending August 2009.

During the year ending in August 2010, the dollar value of export of goods and services increased by 23.8 per cent to USD 5,379.8 million, compared with the level recorded in the corresponding period a year earlier.

“This improvement was largely due to a surge in export of gold, travel and manufactured goods,” says the BOT in its report/, largely due to increase in gold exports.

The value of exports of goods rose to USD3,396.3 million at the year ending August 2010 compared with USD 2,536.6 million recorded in the corresponding period a year largely due to increase in gold exports.

In August 2010, traditional exports stood at USD 34.5 million compared with USD 24.4 million recorded in the proceeding month.

However, the BOT reports says that on the annual basis, traditional exports dropped by 2.6 per cent to USD 473.9 million following decline in the export volumes of coffee, cotton, cashew nuts and clove.

Likewise, the reports adds, “there was a decline in the export unit prices of cotton, siosal and cloves while tobacco export increase by 36.1 to USD 194.6 million during the year ending in August 2010 owing to significant increase in price.

Non-traditional export stood at USD 285.2 million an 18 per cent increase on the July figures.

However, on annual basis non-traditional exports rose to USD 2,922.4 compared with USD 2,049/7 million recorded in similar period a year earlier, largely due to a huge increase in the export volume of gold and manufactured goods.

In the same category, the volume of manufactured goods rose by 30.5 per cent to USD 705 million.

For the year ending August 2010, Tanzania recorded a deficit of USD 49.5 million compared with last year’s USD 716.9 million. “This explained by widening of the correct account deficit by 22/3 per cent to USD 2,691 million following a decline in official current transfers, “the BOT report said.

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Ugandans died as the disused quarry give in burying seven alive

From: Leo Odera Omolo

A woman and her son died instantly and two others sustained serious injuries on Monday evening when a stone quarry collapse and buried them at Kyambaazi in Wakiso district.

A resident of Kyambazzi village points at the spot where six people were buried by stone dust in Nsang

Robinah Nassuna, 28, and her son, Alex Yiiga 16, died at 6:30pm when a stone quarry, from which they were extracting stones, curved in on them.

Her two daughters, Betty Nalubega, 12, and Olive Nakacwa, 14, escaped with injuries.

The two were taken to Appointed Harvesters Medical Centre in Kitemu trading centre in a critical condition and later transferred to Mulago Hospital.

Andrew Bukenya, 42, the father of the children, said his family had been involved in stone quarrying since they were evicted from their 10-acre piece of land several years ago. Bukenya, who had six children with Nassuna, said their three other children had gone to fetch water.

Ssempala Nakirande, a wife to David Ssempala, the owner of the stone quarry, said the family had been told to stop extracting stones from the quarry, which was estimated to be about 20 feet deep.

“The quarry had developed cracks,” she said.

An eyewitness, Nakimbugwe Sitenda, said Nassuna and her son died as they tried to escape.

“We were around when the quarry started collapsing and we told them to get out but they failed. Nasuuna and her three children were buried alive but we managed to rescue Nalubega and Nakacwa,” she said.

Another eye witness, who only identified himself as Dan, said the bodies were retrieved from the debris at 8:00pm.
“It took us more than two hours to get the bodies out,” he said.

Residents said a three-year-old boy and two women were killed in similar accidents in 2004 and 2005 respectively.

The officer in charge of Nsangi Police Station, Baker Kawonawo, attributed the incident to carelessness, adding that the Police would intensify community policing to sensitise residents on how to prevent such incidents.

The LC3 chairman, Vincent Kigozi, said most of the residents are engaged in stone quarrying.

“The stone quarry business is dangerous. We tried to ban the activity but our people have no alternative jobs,” he said.

Deputy Kampala Police spokesperson Ibin Ssenkumbi said the Police had launched an inquiry into the matter

Meanwhile two pupuils of Oketkwer Primary School in Aromo County,Lira distrit n Noirthern Uganda diued on Monday when a piut latrine collapsed on them.
Police have identified the dead as Jaspher Felix Okwor and Jimmy Ikweta both primary seven exam candidate this year.

A senior woman teacher at thr school Lillian Akello said the disaetr struck at around 7.30.A>M before the begining of classes.
She attributed the incident to shoddy construction work and the rains.which have softened the soil.

Ends

Kenya is soon to join the African gold rich nations clubs as the mineral is discovered

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Economic and Business Report by Leo Odera Omolo In Kisumu City

KENYA is set to join the league of mineral rich African countries following the discovery of large quantity of gold deposits in the Narok and Rongo counties.

This was announced here by the Commissioner for Geology in charge f Nyanza Province John Waita who disclosed that gold deposits discovered by experts recently can support large scale mining for up to 15 years. The discovery areas are in Narok and Migori counties in Western Kenya.

The story of discovery of a large quantity of gold was also confirmed by the Acting Commissioner of Minerals and Geology Moses Masibo.

“ I can confirm that several prospecting company has identified economically viable quantities of gold in Lolgorian area of Narok County, which is capable of supporting a medium scale goldmine.” said Masibo.

He further revealed the companies, which are prospecting for gold in the two regions are in the 0reparation phases for extracting the gold and processing it for commercial business.

Waita said the deposits have been found in Rongo and Nyatike, which are both located in Migori County and in Lolgorian in Trans-Mara district in Narok County in an area bordering Tanzania.

“We are confident of golf availability in these areas and what we need is the support from the communities. We have our facts right about the availability after a company, Waita told the STANDARD in an interview published hereon Monday, and which has been received with a lot of enthusiasm by the local communities living in those areas identified and mentioned as the site of the gold deposits.

In Rongo and Nyatike, the prospects of viable deposits of gold were established after companies involved completed exploration.

“Because of the presence of gold in the said areas after the survey the companies have moved to the next stage. In some areas when they know the quantity is smaller, they carry luggage and move away. That did not happening here now,” the top geologist emphasized.

An official working with one of the mining companies prospecting un the region was recently quoted in a report that confirmed the existence of large quantity of gold in the to regions.

“There is gold occurrence in Rongo and Nyatike, We know if we are successful and able to start production, it will have a massive impact on the economy of the country,” Waita said.

A senior official who works for Abba Mining, and asked not to be named due to the sensitive nature of the data, said studies were on going, and added, of neighboring countries, Uganda and Tanzania have high potential of gold and are mining what about Kenya? We know there are some deposits, but we are currently collecting the data to determine the quantity.

The official said massive investment in gold exploration were an indication o the interest generated by the presence of the mineral..

Kenya has the potential of gold but the problem is that there are no maps to show the geophysical location of the mineral, and that is what we are doing currently,” he said.

Abba Mining is involve in gold processing in Botswana,Namibia and Mozambique. Other firm prospecting for gold in Migori, Homa-Bay and Narok counties are; Kilimapesa, Afri-All and Mid-Migori. Mid-Migori has operated has operated for the last ten years and last year, a London based Mineral Exploration firm, Rock Resources Plc sought a 60 per cent stake in it, and signed an agreement with Kansai Mining that owns Mid-Migori. It paid USD 25,000 {about Kshs 2 million as a non-refundable cash deposits.

Afri-All has been exploring in Siaya, Bondo and Kakamega in a joint venture with an Australian mining company In Rongo, Abba Miners have been conducting exploration while in Nyatike, an area where the Commonwealth Development Corporation {CDC} had been conducting mining activities since the early 1930s and only closed down its gold and Copper Mines at Macalder in 1962 due to fear of possible outbreak of chaos after independence in 1963, Mid-Migori have been have been on the ground at Macalder and Masara.

Waita told newsmen that the regions are part of a vast gold belt known as the Archean Greenstone Belt, which is one of the earth’s oldest crust dating back to 3.7 million years. Its geological features are similar to the Gold Reef in Johannesburg, South Africa, and others in Western Australia and Northern Canada that are known to have gold and other m minerals.

Mr Waita statement was confirmed and endorsed by the Acting Commissioner and Mines and Geology Moses Masibo.

He told the STANDARD in a report published on Monday this week that he can confirm that the companies prospecting in the areas have identified economically viable quantities of gold in Lolgorian capable of supporting sa medium scale commercial goldmine.

A British company that has over the past three years been prospecting for commercially viable gold in Lolgorian area of Trans-Mara district recently discovered goop deposits that could earn Kenya Kshs 400 million annually.

Masibo added the discovered gold is of high quality, because it will not require extensive processing. Lolgorian is part of the extensive Greenstone Belt of the Lake Victoria that stretches into the Mara in Tanzania, and believed to have rich gold deposits..

Te company, which is operating in Kenya as Goldplat Kilimapesa Project,is conducting more tests and is yet to finalize regulatory6 issues with the government with a view to obtaining mining license’

It has been discovered that the deposits are between 40,000 ounces {oz} and 60,000 ounces. An ounce is the unit of measuring gold with once ounce equaling 28.34 grammas {0.02835kg}

This means the deposits can support mining of 40,000 ounces per yea with a lifespan of between 10 to 15 years. Going by the current price of gold in the international market where an ounce is trading at USD 1,246 [Kshs 100,926 under current exchange rates}, the projects could earn the country Ksh 400m million annually or Kshs 32 billion in 15 years .is a boom considering smalltime miners in various parts of Western Kenya according to industry estimates, produce a mere Kshs 15 million annually, although much of it is sold to middlemen at prices well below those in the international market.

In the neighboring Tanzania, where gold mining industry is well established the country produces between 100,000 and 300,000 of gold per annum.

Mt Waita said exploration in Rongo began in May this year, and that the technical teams are moving fast and will start production once they have ascertained the quantity. In May this year, during the long rains, small scale miners in Nyatike harvested gold worth Kshs 15 million, in just two weeks, said Mr Waitaindicating a high presence of the mineral.

“Small-scale miners have been reaping millions of shillings from gold mining in the thre districts, an indication of its presence,” he said.

“The discovery in Kenya is small-scale but economically viable. It will significantly transform the economy of the area, said Godric Simonet, the chairman of the Kenya Chamber of Mines{KCM}.

Simonet who is also the managing director of International Gold Exploration {IGE} and at one point was involved with kilimapesa project, added the project will employ 100 people directly and many more indirectly once it gets going.

Until September last year the KLilimapesa project was in partnership with Goldplat and KGE, but the company assumed full ownership after acquiring IGE’s stake at a cost of Kshs 203 million. Though Goldplat Kilimapesa already has the consent of the local community to commence mining, it cannot embark on the project before obtaining a mining lease from the government and carrying out a land lan survey of the area.

A mining lease, which lasts for about 20 years, ensures the company can recoup its investments. Ironically, due to lack of a modern policy, talks between the company and the government on how to charge royalty seems to be dragging the issuance of the mining lease.

Kenya needs a clear mechanism for charging royalty, which should be higher e for the scarce minerals,” says one of the executive directors of Kenya Institute of Public Policy and Research Analyses {KIPPRA}.

The current mining Act, which dates back to 1940s has been described as a major block in the developing of the mining industry. However, efforts are going to present a new Mining Bill in Parliament, while the process of developing a mining policy is in high gears.

In Migori County, Macalder has been coded as the target area. Others areas are Kamwango in Rongo and Lolgorian in Trans-Mara.,the deputy Geologist Mr Paul Mwadime also said there were high hopes for gold in the area. Mining exploration for gold in the region started during the colonial days but the investigations has not been intense as noiw.”

Ends

Leooderaomolo@yahoo.com

USA, Az: Exotic New Mars Images From Orbiting Telephoto Studio

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from: pwbmspac @ . . .

Here is a link to some recently released Mars images. Several look like the kind of imagery we come to expect to find in National Geographic Magazine.

The situation needs to be improved. In the event of success, an indicator at such a future date, you may expect to see research teams exploring such far away locations supported in large part by institutions such as the National Geographic organization.

Notice that the comparable USA national effort is in declining health. A decision after presidential review has canceled — for at least the next year – – the government funding of launch systems development, such as would be needed for human missions beyond earth orbit, (An editorial in Popular Science Magazine, earlier in 2010, suggested to readers this decision might, on the other hand, be good news for a private market in development / operation of space launch services.)

– – – – – – – – – – –

Exotic New Mars Images From Orbiting Telephoto Studio

A new batch of sharp Martian close-ups from NASA’s HiRISE camera were released on Sept. 1. HiRISE (High Resolution Imaging Science Experiment) has been circling Mars on the Mars Reconnaissance Orbiter for four years now, taking dramatic photos of the red planet with a telephoto lens to make any paparazzi jealous. The camera can focus on objects the size of a beach ball from more than 180 miles away.

The 236 new images, taken between July 8 and July 31, cover the planet practically from pole to pole. They zoom in on terrain ranging from volcanic cones to cratered planes, from wind-swept dunes to crusts of ice. The images even capture evidence of ongoing geological processes on Mars today, like fresh craters that may have formed between January and June of this year.

Visit and read article at:
http://www.wired.com/
wiredscience/2010/09/new-mars-image-gallery/
?pid=52&pageid=28254&viewall=true


Above: These volcanic cones were formed by hot lava running over water or ice. The heat from the lava boiled the water underneath, and the water burst upwards in an exploding bubble of lava. The explosion threw chunks of molten and solid lava into the air to gather into the cones. These cones are similar in size and shape to cones found in Iceland.

Kenya: Nicholas Biwott’s popularity on the upturn trend in Kerio South constituency

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Leo Odera Omolo Reporting from Eldoret Town

The sacking of Jackson Kiptanui as an Assisant Minister for Environment is a blessing in disguise for the “Powerman” Nicholas Kiprono Kipyaor Biwott,the former powerful member of the Moi KANU regime.

Known to his peers as”Karnet”{ iron rod} Biwott lost the Kerio South seat for the first time in 2007. He had hold on this seat ever since he was first voted to Parliament in 1974. His defeat was unexpected. Especially due to his attractive record in an area previously considered as the most backward in the North Rift.

Biwott had turned the constituency to a hub of massive development. His tenure saw the construction of tarmacs road, massive electricity supplies, and massive water supplies to almost every village.

The constituency also witnessed the establishment and construction of many ultra modern schools, medical facilities, followed by the employment of men and women from Keiyo into senior positions in both the government, the parastatal and quasi-government organizations.

It was near impossible and nobody could dream of defeating Biwott in Kerio South constituency, which is located in the southern end of Keiyo district alongside its border with the Uasin Gishu district.

During the representation of Biwott, which last for more than two decade, the constituency also witnessed massive changes of development including the establishment of Flourpar Mining, the introduction of tea bushes and pyrethrum as some of the cash crops and.

However, the ODM euphoria that swept both North and South of the Rift like Tsunami like any other legislator of time. The popularity of the Prime Minister Raila Odinga in the North Rift at the time had become irresistible. This euphoria made many political novices like Jackson Kiptanui and other easily made to Parliament.

And when the time for the campaign for the referendum voting came, Jackson Kiptanui was one among the reel ODM who vigorously campaigned for the Reds led by the Minister for Higher Education William Ruto, and at the end become the first causality of the referendum outcome. Was kicked out of the cabinet and his place taken by Prof.Margaret Kamar who9 had exhibited unswerving loyalty to the ODM and camp0aigned vigorously for the Greens to the bitter end. It was truly the time for the party leader Raila Odinga to reward the Professor for her loyalty to the party.

The sacking ofKiptanui has since elicited strong protest from his fellow Kalenjin MPs who immediately launched the spirited scathing criticism with one Charles Keter {Belgut} likened Mr Odinga as one of the worst living dictator, adding that he is even worse than the former despotic military ruler of Uganda Idi Amin.

Soon after the news of Kiptanui sacking from the coalition government hit the streets in Eldoret and Kerio South Constituency rural area, Biwott’s loyal supporters went into celebration and merry making.

Some of overzealous ones are said to have slaughtered animals and bought crates of beer to celebrate the downfall of Kiptanui. These fancy celebrations are said to have gone one for the whole of last week.

The residents of the Kerio South for more than two decades of Biwott’s leadership were used to an industrious MP who is well known for go getter. They had enjoyed a lot of development as the surrounding valley and hilly areas turned to be green and the hub of massive agricultural development and food production. But these gains had turned to nothing ever since the year 2007 general election.

Biwott development record at the constituency level is unequalled by any MP in modern Kenya politics. He has since kept low profile preferring to chip milder comments only on issues of national importance. The “powerman” also in later years fought Uhuru Kenyatta for the position of KANU national chairmanship, but lost in a much flawed elections of the party’s national office bearers held in Kasarani, Sports Ground during which most of his supporters were locked out.

Arguably one of the wealthiest Kenyans with massive investment in the farming, oil business and properties well spread the globe, Biwott is believed to have made his wealth as the result of his loyalty and long time association with the retired President Daniel Arap Moi. Prior to being elected to Parliament in 1974, Biwott had for a long time served the former President as his private secretary. He is said to have a soft heart for both the two principals in the coalition government, President Mwai Kibaki and the Prime Minister Raila Odinga.

The powerman, is said to be only the second Kalenjin with the largest following with the community after the Higher Education Minister William Ruto and the retired President Daniel Arap Moi. The diminutive politician is also enjoying a lot of respect from members of other Kenyan communities.

Residents of Kerio South interviewed last week by this writer said they would vote Biwott on a 99 plus per cent. The constituents only regretted that they were duped by the ODM to elect a political novice who cannot deliver the goods.

“We want “Karnet” back in parliament. He is a go getter and highly productive. He has improved our socio-economic within the twenty years he was in parliament and changed the whole landscape of Kerio South. This is the place where one can easily find a family living in a grass thatched house enjoying electricity supply.

In the neighboring Cherangany, the electorate had spoken when they voted unanimously for the Greens. Something which has since became shameful to the incumbent MP Joshua Kutuny. The word making the round is that the former area MP Kipruto Arap Kirwa is also on his way to Parliament come the year 2012.Before losing his seat Kirwa had served as the Minister for Agriculture and he is credited for having done well in assisting both the large and small scale dairy farmers, maize famer and wheat farmers in the North Rift region.. But like Bowott’s Kerio South, the politics of Cheranganyi has also shifted dramatically towards Kirwa.

While sipping a glass of beer at the Wagon-Wheel the popular public joint located right in the middle of Eldoret Town, which is frequented mostly by Kalenjin political elite in the North Rift, I encountered two men from Biwott’s former constituency and engaged them in a loose political discussions, one of the two men Mr. Justus K Komen from Kerio Vally had this to say, “When the next general election is around the corner, we as the Kerio South constituents, we shall advice Hon Biwott to take his family along with him to the Coast or abroad for holiday, and we shall do the campaign on his behalf and ensure that he is back in Parliament with an overwhelming majority of not less than 100 plus per cent.”.

The other person who preferred to maintain his anonymity, blamed William Ruto and the retired President Daniel Arap Moi arguing that the two spent a lot of time and resources campaigning against the Kalenjin Ministers Henry Kosgei,{Tinderet} Dr Sally Kosgeyi{Aldai} and Franklin Bett {Buret} but did not bother to visit Kerio South and Cherany

Komen revealed that in 2012, the ODM leaders and members in the region would consider prevailing upon an aspirant who is a pure Nandi candidate be it a man or a woman to take on Ruto in Eldoret North. The just concluded referendum voting in whose outcome Ruto had emerged slightly a winner, but almost in neck to neck with the Greens, had shown us that Ruto is not all that invisible and he is a beatable man. if the pure Kalenjins voters could be well coordinated with voters from other communities living in the constituency.

The names Biwott and Kirwa, now rung into the ears of everyone in all public joins in Eldoret and Kitale towns.

Ends

leooderaomolo@yajhoo.com

usa: re: Apologize to BP?

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Folks,

Act and spread the word.

Pass and share the message to those you know living in the US, so they can sign up.

Thanks,

Judy Miriga
Diaspora Spokesperson
Executive Director
Confederation Council Foundation for Africa Inc.,
USA
http://socioeconomicforum50.blogspot.com

– – – – – – – – – – –

From: David Plouffe
Subject: Apologize to BP?
Dear Readers: —

When BP CEO Tony Hayward testified before Congress this morning, many expected to hear him apologize for the disaster his company has caused. Instead, GOP Congressman Joe Barton was the one saying he was sorry — to BP.

In his opening statement, Barton, the top Republican on the committee overseeing the oil spill and its aftermath, delivered a personal apology to the oil giant. He said the $20 billion fund that President Obama directed BP to establish to provide relief to the victims of the oil disaster was a “tragedy in the first proportion.”

Other Republicans are echoing his call. Sen. John Cornyn said he “shares” Barton’s concern. Rep. Michele Bachmann said that BP shouldn’t agree to be “fleeced.” Rush Limbaugh called it a “bailout.” The Republican Study Committee, with its 114 members in the House, called it a “shakedown.”

Let’s be clear. This fund is a major victory for the people of the Gulf. It’s a key step toward making them whole again. BP has a responsibility to those whose lives and livelihoods have been devastated by the disaster. And BP oil executives don’t deserve an apology — the people of the Gulf do.

Stand with us to show that the American people support holding BP accountable — and we won’t apologize for doing so.

http://my.barackobama.com/page/content/noapology/?source=20100617_DP_act&keycode=8a9fa8f9b8ebea495f72b64bcbeac530cc681ccc171838a963a0305385a738ab

Tanzania: Securing a Social Licence to Operate? From Stone Age to New Age Mining

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From: Yona Maro

This report says that despite its relatively nascent operations, commercial mining is becoming a significant contributor to the Tanzanian economy and has the potential to become more so. While mining’s contribution to Tanzania’s gross domestic product (GDP) is a relatively modest 2.3%, its export value constitutes some 45% of foreign earnings. Moreover, the government has set a target for the sector of a 10% contribution to GDP by 2025. Africa’s third-largest gold producer after South Africa and Ghana, Tanzania is also endowed with significant diamond, gemstone and nickel deposits. Since the commencement of Tanzania’s commercial mining operations, up to 15% of Africa’s mining investment has been ploughed into the country’s mining industry. Tanzania’s gold deposits, along with its favourable Mining Act, have attracted investment from two of the world’s major gold producers, Barrick Gold and AngloGold–Ashanti. However, mining in Tanzania has also attracted a great deal of increasingly trenchant criticism, resulting in claims that the country is not deriving its fair share from its mineral endowment and the government establishing the Bomani Commission to inquire into the mining sector, tasked with examining the existing Mining Act. While at the time of writing this report the government had not released its response to the Bomani Commission’s findings, the expectation is that the government may seek to take a 10% stake in selected mining operations, increase the royalty on gold producers from the current 3% to 5%, and scrap a number of tax breaks and incentives embedded in the current Mining Act and other legislation.

http://www.saiia.org.za/images/stories/pubs/reports/saia_rpt_07_goldstuck_hughes_20100326.pdf

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Tanzania: The nation plans to build its nuclear power plant in the near future

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Economic and Business News By Odera Omolo In Kisumu City.

REPORTS emerging from Dar Es Salaam, says Tanzania is planning to build a nuclear power plant in the near future with the technical backing of a South African and French multinational companies.

It would be the first nuclear plant of its kind in the Eastern African region. This is following a move by South Areva, a South African multinational firm, which is a member of the French multinational Areva Groups to bid to its construction.

Currently, the country, which depends on hydro-electric power to produce electricity, suffers from frequent acute power shortage.

The chairman of Areva South Africa Mohamed Madhi was recently in Dar-Es –Salaam from where he disclosed the plans to newsmen. He said his firm was seeking opportunities in East Africa to invest in nuclear power production.

He explained that Areva will produce clean energy in Tanzania though the construction of nuclear power plant pending the conclusion of negotiations with the government of that country.

“Areva is one of the leading companies that will be bidding for contracts to build energy capability in Tanzania,’ said Madhi. The firm is also a leading global nuclear energy with integrated capability across the full nuclear energy cycle from mining of uranium, to building of power stations, transmission and distribution of electricity and recycling and disposal of nuclear waste.

According to Madhu, South Africa, is currently working on a capital expansion program that will treble its power generation capacity from the current 38,000MW to about 80,00MW.

“Nuclear is expected to to form a significant portion of the energy mix in three projected capital expansion plan” Madhu said, adding that in the last capital expansion program the government anticipated that nuclear would form over 30 per cent of the new-built program.

According to Areva, nuclear is currently seen as a cost-effective environmentally friendly and relevant development energy option. Globally, it says, there is resurgence of interest in nuclear energy ,referred to in the industry as the “Nuclear Renaissance driven by the growing demand for energy among the fast growing emerging economic powers India and China.

It is also driven b the climate change issue, as other ‘base-load “option, coal fired power stations- is increasingly seen as a carbon intensive.

Madhu said the African continent ha energy resources-uranium solar, hydro, geothermal coal and gas which and underdeveloped.

However, experts at the Arusha-based Tanzania Atomic Energy Commission say extensive preparation are needed before the country can and process uranium.

The Commission’s director Prof. Idi Mkilaha in a recent interview with the EASTRAFRICAN that according to the International Atomic Energy Agency, baseline studies to assess the current level of contamination need to be made besides the mining regulations, there are regulations on safety and safeguard matters to consider.

Asked about the generation of electricity from nuclear, Prof Mkilaha said mining uranium and electricity generation are two different things.

“Major steps towards nuclear power plant development involve energy planning and analysis to establish and predict the optimum energy mix for the country in the short and long term,” he added.

Further steps include developing safeguards and nuclear regulatory framework and infrastructure, carrying out self-assessment in terms of the basic infrastructure for nuclear development and implementation, and human resources capacity development in nuclear technology.

The country also needs to carry out stakeholder and community education on nuclear power plant and its implications, identifying suitable and appropriate technology, site and nuclear power plant vendors, construction of nuclear power plant, and finally commissioning, monitoring and reviews of future development.

Prof. Mkilaha said uranium investment can take between 10 and 20 years to start paying back and as such economic benefits must be planned carefully before any commitment is made.

Ends

leooderaomolo@yahoo.com

Uganda: URA is demanding UAD 404 million from the sale of two oil fields

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Writes Leo Odera Omolo

UGANDA Revenue Authority (URA) is demanding over $404m (about sh810b) from the planned sale of two oil fields, Blocks 1 and 3A, found in northern and western Uganda.

The money is in form of income tax and capital gains on disposal of the oil assets.

“The disposal of the licence interests in blocks 1 and 3A gives rise to income sourced in Uganda,” Moses Kajubi, the domestic taxes commissioner, stated in an April 9 letter, written to Heritage Oil and Gas Ltd.

It was also copied to the URA commissioner general, Allen Kagina, permanent secretaries of the energy and finance ministries and the Bank of Uganda governor.

Heritage is in the process of selling its interest in the oil fields, valued at $1.5b.

The deal entails that a prospective buyer immediately pays $1.35b and a further $150m or surrender a stake in a producing oil field of a similar value within two years.

However, the transaction has not been finalised as the Government is still studying documents submitted by two companies, Tullow Oil and Italy’s Eni, to buy the oil assets.

Sources said URA has computed the capital gains on the basis of reducing signature bonuses earlier paid for the exploration licences, which amount to $250,000 from the consideration of $1.35b.

The balance will then be subjected to 30% of the income corporate tax, which brings the expected revenue collection to $404,925,000.

“Make payment to URA collections in US dollars Account Number 2362032291 at Bank of Uganda on assignment approval date or within 45 days from the date of service of this notice,” Kajubi demanded.

The rush in raising the taxes, even before the oil deal has been approved, comes at a time when the tax body registered revenue shortfall last month.

The loss created fears that the target of collecting sh4.4 trillion by close of June may not be met.

Experts opined that demanding payment from the unfinished transaction could be a strategy by URA to include the expected revenues as accrual income in its annual statement, a move that would mitigate the shortages.

In a move to meet its target, the tax authority has abolished an internationally-recognised customs valuation method, where taxes are assessed based on transaction value.

This violates the World Trade Organisation/General Agreement on Trade and Tariffs as well as the East African Community Customs Management Act.

Ends

Uganda: Government is still studying oil deal between Tullow and Heritage and not in rush

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Reports Leo Odera Omolo

THE Government will not rush to approve the sale of the $1.5b oil fields before its interests are “satisfactorily” met. This reaffirms its position to build an oil refinery in the country.

The fields belong to Heritage Oil.

“We have different options, but I can assure you that the Government cannot approve a project that does not satisfy our conditions,” Ernest Rubondo, the commissioner in charge of petroleum exploration and production department, said in an interview.

“We are still reviewing the process to ensure they meet our interests.”

The Government wants early commercialization of the petroleum resources, value addition and listing by the companies on the Ugandan stock market.

The other conditions are based on the prospective firm’s investments in Uganda’s oil and gas sector and avoidance of a monopoly in the Albertine Graben rift basin.

The declaration came at a time when Tullow, one of the firm interested in buying the fields, said its bid would be “approved in few weeks time.”

“A formal request for the Government consent for the assets to be transferred to Tullow was submitted. They have indicated their intention to approve this transaction in the next few weeks,” the firm said in an interim management statement yesterday.

A bid war over who should control the two oil fields, blocks 1 and 3A in northern and western Uganda ensued when Heritage oil in December agreed to sell its stake to the Italian firm.

The deal was that Eni would pay $1.35b as immediate payment, and a further $150m or a stake in a producing oil field of a similar value within two years, subject to approval by the Ugandan Government.

However, the deal was subject to Tullow exercising its pre-emptive rights. The initial agreement between Heritage and Tullow Oil stipulated that if one wanted to dispose of its stake, the other partner had the first option to buy.

Tullow exercised its right of pre-emption which is under review by Government and a decision is yet to be made. However there are fears that a monopoly would rise if Tullow owns the asset which will hand it 100% control and delay early oil production.

But yesterday, Tullow said it has been working closely with government to sell part of its interests. “Two partners have been selected, CNOOC and Total, and each partner will acquire a one third interest in each of the three blocks,” the firm said in its interim management statement.

“This will result in a unified partnership with considerable technical, operational and financial capability. In addition, it will enable Uganda to become a significant oil producing nation with the potential to produce at rates significantly in excess of 200,000 barrels of oil per day (bopd)”.

In separate interview, Jimmy Kiberu, the firm’s public affairs manager, said: “Tullow made it clear many times that it has no intention of holding 100% of the Lake Albert licences and will be bringing the partners into the project because of the immense financial muscle and technical expertise required to develop the whole basin and export the oil”.

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UGANDA: THE DRILLING OF COMMERCIAL OIL AND GAS HAS STARTED IN RUKINGIRI DISTRICT

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Rreports Leo Odera Omolo In Kisumu City

Drilling for oil and gas in Rukungiri and Kanungu districts has started.

The exercise is being undertaken by Dominion Petroleum Company at Rwenshama and Rweisigiro sites in Bwambara sub-county in Rukungiri and Kameme in Kanungu.

Excavation works at one of the sites in Rukungiri district

Dominion signed an agreement with the Government in 2007 to explore for oil and gas in the area.

Andrew Nyakaana, the liaison officer, told Rukungiri district leaders during a tour of the oil fields that the firm had invested billions of shillings into the exercise.

The exercise will involve sinking a rig where oil wells have been spotted to determine its volume.

Nyakaana conducted the district officials around the affected villages.
He revealed that his company would repair the feeder roads in the area to ease accessibility.

He said Dominion had started compensating the people whose crops were destroyed when the firm was opening up new roads and the site where the drilling will take place.

Rwesigiro residents are the most affected.

Nyakaana, however, said the pronged rain has delayed the exercise, but was optimistic that when the rain subsides, the works will continue uninterrupted.

He told the leaders led by the Rukungiri LC5 chairman, Zedikia Karokora, that an aerial survey conducted in 2009 provided good prospects for exploration in EA-4B block.

Meanwhile, the exercise has created down-stream jobs for drivers, cooks, causal labourers.

According to Dominion officials, the local residents have the first priority to the jobs.

The true potential of the Ugandan side of Lake Albert is nearer two billion barrels, making it one of the top 50 oil producers in the world.

Oil finds have already been made in the Bunyoro region.

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KENYA: HUGE DEPOSIT OF NATURAL GAS FOUND IN ITS NORTHERN DISTRICT OF ISIOLOO

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Brief Economic and Business News By Leo Odera Omolo In Kisumu City

Kenya has struck a huge deposit of natural gas after several years of exploration in its northern frontier district of Isiolo, which is too close to the her international border with the neighboring Ethiopia.

The discover of the natural gas is made by the Chinese state owned Oil company, CNOOC.

It is commercial viability, according to an announcement made in Nairobi this morning is to be confirmed later after one month of tests.

Kenya has been desperately exploring for oil and gas in several spots in the semi-arid regions of Northern Kenya and also along its coastline in the Indian Ocean.

If the discovery is confirmed, the country would join its neighbors Sudan Uganda, and Tanzania as one of the oil and gas producers in Africa.

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leooderaomolo@yahoo.com

Uganda: Refining of Its gold is now being done with technical help by Russians

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Business Report By Leo Odera Omolo

RUSSIAN investors have installed a $1.5m gold refinery, the first of its kind in the Great Lakes region, underscoring the Government’s efforts to ensure valued-addition on all commodities produced.

Victoria Gold Star, based in Fifth Industrial area in Kampala, can refine 60 kilogrammes of gold daily.

“When the supply of gold that requires refining increases, we shall also increase the plant processing facility,” Bogoroditskiy Yuri, the boss, said at the launch yesterday.

“We shall be able to buy raw gold, refine it here and export it as a finished product made in Uganda, which in return will fetch more money.”

The new plant comes at a time when gold deposits have been confirmed in Busia, Bushenyi, Mubende and Karamoja, according to a geophysical survey conducted last year.

Occurrences of gold have also been found in West Nile, Kitgum, Mbale, Jinja, Hoima, Rukungiri, Kisoro, Kabale, Kibaale and Kabarole.

A mineral deposit means that extensive exploration has been done and the quantities determined, whereas a mineral occurrence means the mineral has been seen but not quantified.

Uganda has only two gold mines in Busia and Mubende, leaving huge potential for investors to venture into mineral development and production.

Asked if there was enough gold to sustain the operations of the refinery, Yuri replied: “We shall also refine gold from Uganda and neighbouring countries like the Democratic Republic of Congo.”

He added: “What we are trying to do is to legalise trade in gold. We shall require import and export licence for the gold that we shall refine.”

Peter Lokeris, the state minister for mineral development, urged miners, mineral dealers and goldsmiths in Uganda and the region to use the facility to add value to gold so as to earn better income.

“President Yoweri Museveni is on the forefront, advocating value-addition on all commodities produced,” Lokeris said.

“The refinery will make an important contribution to support the development of the mining sector and national economy.”

Lokeris explained that the Government put in place a mineral policy aimed at boosting the mining sector through promoting private sector participation, adding value to mineral ores and increasing mineral trade.

Uganda, Kenya, Tanzania, Burundi, Rwanda and the Democratic Republic of Congo take the raw gold to South Africa for refining, which has made them lose huge amounts of money.

The improving global economy and historically low central bank sales have boosted gold prices. Gold sales rose to $480 from $431 per ounce last year.

The Tira Gold Mine has been operating in Busia district since 1994, producing about 3kgs of gold a month.

The second mine is being developed in Kamulenge in Mubende by AUC Mines.

Experts say Busia has huge potential because it is part of the vast gold field belt stretching from Mwanza in Tanzania to Karamoja.

Tanzania has opened six world class mines in the area since 1998, producing over a million ounces of gold a year.

Last year’s survey that covered 80% of the country showed that Uganda is also endowed with rich and diverse mineral wealth, ranging from copper, uranium, cobalt to limestone and pho9sphate.

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Uganda: More oil and gas discovered in Balisia district

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Writes Leo Odera Omolo In Kisumu City

TULLOWO Oil , the Irish firm that carries out the exploration of oil and gas in Uganda, has announced more has been discovered in Balisia district.

It says, in a statement released to the press, that two appraisals of wells in Balisia district have confirmed the presence of a massive oil reservoir, hastening steps towards early petroleum production in the country.

The review was done on the Kasamene 3 and Kasamene 3A wells in the Butiaba region of Balisa 2. It also discovered more oil at the Warhindi North fault scheme.

The Kasamene oil field is where Tallow Oil wants to locate the early oil production scheme

“These exploratory appraisal results have shown the potential in this area. This now take us a significant step towards the first oil production in Uganda at the Kasamene filed next year,” the company’s exploration director Angus MacCross told newsmen.

McCross disclosed that Tullow was working closely with the Ugandan government on the way of accelerating the exploration and appraisal activities in the region.

“We also look forward to commencing a north well program with a second rig in Block 1 next month,” said McCross.

According to the statement from Tallow Oil, the Kasamene-3 well is 1,109 meters deep and over 2 kilometers from Kasamene 1 discovery well.

The result of logging confirmed 10 meters of oil pay within a 35 meters thick reservoir section of the Kasamene fields.

Pressure data confirmed this pay to be in communication with the up-dip Kasamene -1 well, extending the column height of these to over 100 meters.

A high quality reservoir, 25 meters thick, were encountered as projected below the oil water contents. “This outcome proves the viability of this location as a future water injection point to support oil production,” says Tullow ‘s statement.

A second well, to explore the Warhindi North fault block, was also drilled through the top-hole section of Kasamene-3. The well encountered over 15 meters of oil pay.

The rig will now move to the Kais-Tonya area to drill, the Nzizi-3 appraisal well to support the accelerated Nzizi oil development project.

Kasamene-3A,well drilled about 988 meters deep into a separate fault compartment, about 300 meters Kasamene-3.

Tullow has interests in the three licenses in the Lake Albert Rift Basin in Uganda. lt is the sole owner and operated Block 2.

The firm also has 50 per cent stake in Block-1 and 3A operated by Heritage Oil, which has the other 50 per cent.

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leooderaomolo@yahoo.com

Tanzania: PAC has ordered Tanzania’s fictitious diamonds sorting office in the UK closed down

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TANZANIA HAS CLOSED DOWN ITS DIAMOND SORTING AGENCY OFFICES IN LONDON FOLLOWING PARLIAMENTARY COMMITTEE INVESTIGATIONS.

Writes Leo Odera Omolo In Kisumu City

REPORTS emerging from the Tanzanian capital, Dar Es Salaam say that country has closed down its diamond sorting firm in the UK and transferred its operation to Dar.

The Commissioner of Minerals in the Ministry of Energy and Minerals, Dr Peter Dalaly Kafumu, has confirmed the report by saying that the closure was necessary, following Petra Diamond’s purchase of De Beers interest in the Williamson Diamonds mines, which are located in Mwadui, Shinyanga in Central Tanzania.

He explained that since Petra Diamonds sells its mineral products directly to the overseas markets, the functions of Tanzania Diamond Sorting {Tansort} in London has become irrelevant and redundant.

Petra bought a 75 per cent stake at Williamson Diamond Mines from De Beers Societe Anonyme subsidiary Willcroft Company Ltd in 2008 for USD 10 million, and changed the firm’s name to Williamson Diamond Ltd. The government of Tanzania retains the remaining 25 per cent of the shares.

According to Dr Kafumu, Tanzania law stipulates that if a mineral {diamond} company is selling its products via a third party, then the government agency is needed to work out the prices. However, if the firm sells direct to the market, there is no need for any government agency coming in the picture as a go-between.

Tansort, which was established in 1966, came into limelight when it was reported to have failed to disclose its financial accounts, forcing the Parliamentary Public Account Committee {PAC} to launch investigations on its activities in 2004. The committee suggested its immediate closure to save its misuse of public funds.

Pac investigations had revealed that between 1994 and 2000, De Beers had paid USD 4.05 million to Tansort for the sorting of 901,300 carats of diamond. De Beers pays Tansort USD 4.5 per carat.

But according to the government officials, no money paid by De Beers to Tansort has been remitted to the Treasury. Thus in 2004, PAC was allowed to investigate Tansort activities and methods of payment of royalties from diamond sales.

The PAC investigations reported gross misappropriation of funds, but the government is yet to give detailed explanations on the firm’s activities and why it does not remit money to the Treasury.

A human rights lawyer, Tindu Lissiu was recently quoted by the EASTAFRICAN as saying that the closure of Tansort does not mean the corruption allegations are also closed for the firm.

However, the PAC chairman, John Cheyo {UDP}, said his committee wanted the firm to be closed long ago and gave “full blessing “,as price checking and quality control was directed by the De Beers.

“The accountant and audit general will continue to follow the matter in a normal manner and report. We are satisfied with the progress and we hope by end-year things will improve,” Hon Cheyo, a Member of Parliament for the United Democratic Party said.

Parliament’s hansard records indicate that on July 17, 2006, when tabling the budget for the Ministry of Energy and Minerals, the then Minister Dr Ibrahim Msababa said Tansort was allocated one million dollars for the training of its staff and officials.

The sums of money was also meant to meet office rent expenses for the company, which according to the Minister, was to be moved back to Tanzania from the UK.

The PAC in 2004 formed the probe committee, after it found that answers given by the accounts officials from the Ministry of Energy and Minerals were not “satisfactory”.

The reports say the processing of the diamonds before they are handed over to Tansort is undertaken entirely by Williamson Diamonds ltd. “What Tansort office checks is only the weight and seals, but the existing system does not allow the officer to determined whether the size and quality of diamonds he has received are the same as that sent from the mine“, says the report.

The PAC also looked into the establishment of Tansort and why USD 2.5 billion accruing from the sorting of diamonds were not remitted to the Treasury. The committee found that Tansort does not legally exist since its creation in 1966.

The Tanzanian government has failed to explain how it was crated or produce documents to support its creation.

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