Stamico to take charge of four mining firms

Dar es Salaam. The government has decided to take over four private mining firms and place them under the charge of the State Mining Corporation Stamico).

The energy and minerals deputy minister,  Mr Stephen Masele,  told The Citizen in an exclusive interview that  the firms are Biharamulo Gold mine, formerly owned by African Barrick Gold, Buckreef Gold Mine in Geita Region and Tanzanite One and Kiwira.

He said Stamico will run them through a newly established company, StamiGold,  expressing optimism that it is poised to record big success in the sector and make signifcant contributions to State coffers.

Mr Masele explained that Buckreef was currently processing an Environmental Impact Assessment and mining licence.

Tanzanite One was operational and was being co-managed by a joint  technical board that approved  expenditure and other important decisions, he added.

He said the Kiwira coal mine project was operational and was making final preparations for generating 6MW for a start. 

The figure is anticipated to rise to 200 MW, the deputy minister explained further, adding that, tenders for public private partnership were being processed and would be floated soon.  He said  Kiwira’s underground mine would be expanded to double its capacity to 300,000 tonnes from the current 150,000 tonnes of coal to be used in generating power.

“There will be also an open cast mine that will be constructed with a capacity to produce 1.5 million tonnes of coal. Producing 200MW of electricity requires this amount of coal,” Mr Masele said

State Mining Corporation (Stamico) is a state-owned enterprise established in 1972 under the Public Corporation Act, 1969 with a mandate of developing mining industry in Tanzania.

On why Stamico had taken up some pits in which giant firms had ceased to have an interest, Mr Masele  explained that, while the giants considered them unprofitable,  they would be beneficial to Stamico.

“Take the example of Biharamulo Gold Mine, formerly known as Tulawaka. It has  about 100,000 ounces left,  for which a giant company like African Barrick Gold finds the  operational costs unduly high, but for which Stamico  will make a profit,” the deputy minister said.

Stamico signed an agreement for development of the project in the year 2011 with Tanzania American International Development Corporation Limited (TANZAM 2000), a subsidiary of Canada’s Tanzania Royalty Exploration Corporation.

Tanzam 2000 is the majority shareholder with a 55 per cent stake.

He said if things go well, Stamico would make a net profit of sh7billion during the next two and  a half years from Biharamulo Gold Mine.