Writes Leo Odera Omolo.
The Buckreef gold mine will restart operation after 17 years following a USD 280 million deal with Tanzania’s State Mining Corporation has entered into Canadian gold explorers, Tanzanian Royalty Exploration Corporation.
Information emerging from Dar e Salaam say, the move is in line with the new Mining Policy and Mining Act 2010 which allow s the government to take an active role in mining by owning shares in the business concerns.
“We aim at a win win situation reflected in a national and fair revenue sharing from the mining and energy sectors,” said Deputy Minister for Energy and minerals Adam Malima.
The state-owned mining company, known as Stamico, will hold a 45 per cent of the shares while the remaining will be owned by Tanzanian 2000, a subsidiary of the Canadian company.
Malima was quote by the local press as saying that the government was actively engaged in mining activities after the enforcement of the law. The Buckreef goldmine is estimated to have deposits amounting to1,450 million ounces.
“Exploration is still underway to determine whether there are more deposits at the site”,said Minister Malima.
He explained that the company had already requested the ministry to enlarge the mining site from the current four square kilometers to 16 square kilometers..
According to Ally Samaje, the acting Commissioner for Minerals at the Ministry, Stamico closed down the mine after failing to properly manage the costly mining operations. The mine was closed in 1994 and since then Stamico has been scouting for a strategic partner to re-develop the facility,” said Samaje.
Tanzania 2000 will have 30 months to complete a research and feasibility study that will cost USD 20 million.
The mining sector in Tanzania currently contribute about 2.3 per cent of the GDP, which is projected to rise to 10 per cent in 2003.The joint venture comes as the Tanzanian government plans to raise royalty payments on gold exports by the end of this year.
The country’s Minister for Energy and Minerals William Ngeleja disclosed the government has already reached an agreement with mining companies to raise royalty payments from the current 3 per cent to 4 per cent.
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