Tuesday, August 16, 2011

Tanzania invites gold processors

DAR ES SALAAM -  Tanzania is calling for international and local firms to venture into modernization of artisan mining and establishment of a Gold processing plant at Mantinje-Igunga District, Tabora.

The eligible firms will be required to partner with the National Development Corporation (NDC) in a development and implementation of the pilot project.

According to NDC, the implementation of the project will also require the eligible firm to make a joint venture with another qualified firm.

Mr. Gideon Nasari, the Managing Director and the Chief Executive officer of NDC told East African Business Week in Dar es Salaam last week that the DNC intends to pre-qualify developers, mining companies, beneficiation companies or firms to act as co-sponsors and share holders along side the NDC in promoting joint ventures to develop the project.
According to the Ministry for Energy and Mineral, NDC is mandated to devolop small scale mining as an important economic sector. The aim is to transform the informal artisan mining activities into an organized, formal and modern small scale mining sub-sector.

A pilot project, Matinje Gold Recovery, located in Igunga district, Tabora region has been conceived for Small Scale Mining Programe in central development corridor.

In another development Canada's Lake Victoria Mining Company has recently ended its joint ventures with Otterburn Ventures of Vancouver, British Columbia, affecting four of the gold mining exploration projects at Singida, Geita, Kalemela and North Mara. Lake Victoria Mining retains 100% of its rights to all four of the projects.

The partnership ended upon disappointing results received at Singida, where gold prospecting has raised hopes of an economic turnaround.

Lake Victoria Mining said research had determined there may be scope for small-scale commercial gold mining at Singida, currently the site of two drilling projects.

Another player in the mining arena, Tanzanian Royalty Exploration Corporation Company is set to construct a gold plant at the Buckreef Gold project in Tanzania. According to the Mr. James Sinclair, Company's President and Chief Executive Officer, the firm is currently in discussions with international consulting firms with respect to a turnkey price for the construction of plant and mine-related facilities at the Buckreef Gold Project.

He said "to speed up development of Buckreef Gold Project in Tanzania, the firm will inject a $25 million obtained from the bought deal offering.

"The sum of amount will see the completion of a full feasibility study on the Company's advanced stage of Buckreef Gold mine which is located in the Rwamagaza greenstone belt, 115 kilometers  South West of Mwanza.," said Mr. Sinclair. Tanzania is Africa's third largest gold producer, after South Africa and Ghana, and also has reserves of uranium, nickel and coal. Gold is the country's largest export revenue earner. 

Gold exports earned the East African country $1.076 billion in 2009, up from $932.4 million the previous year.
In the year 2010 Tanzania total gold output was 44.6 tonnes.

According to the central Bank of Tanzania, gold exports revenues increased by 21% in 2010 that ended May 31 2011 due to increased prices on the international market. 

Tanzania exported gold worth USD 1.67 billion in May compared with USD 1.42 billion a year 2010.

The price of gold rose by 26.5% to $1,321.17 per troy ounce mainly due to the weakening of US dollar against other major currencies which in turn increase the demand for gold as a safe investment.

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