Acting (STAMICO) Managing Director Engineer Edwin Ngonyani Left and Director Of Finance and Corporate Affairs Mr Peter Gembe.---
By STAFF REPORTER
PRODUCTION of gold at the Buckreef Gold Mine in Geita Region in which the State Mining Corporation (Stamico) has 45 per cent stake is expected to kick-start in November this year, it has been learned.
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 55 per cent stake.
The gold mine has 2.4 million ounces of the precious mineral and exploration is still ongoing as the project has 19 prospecting licences at the area, according to Stamico's Drilling Manager Alex Rutagwelela.
"We have already conducted the environmental and social impact assessment (ESIA) and has been sent to the National Environment Management Council (NEMC) for approval," Mr Rutagwelela noted.
This was revealed during a news conference held in Dar es Salaam on Wednesday presided by the newly appointed Acting Managing Director of Stamico Eng. Edwin Ngonyani.
During the occasion, Eng. Ngonyani revealed on the other hand that Stamico expects to make a net profit of 7bn/- during the next two and half years from Biharamulo Gold Mine, formerly known as Tulawaka, which it acquired from African Barrick Gold (ABG), last year.
The medium-scale mine under the new management is expected to start production by August, this year. It will be managed by StamiGold, a subsidiary of Stamico.
There are proved deposits of 100,000 ounces of gold at the mine but prospects are higher for more discoveries, according to the Acting Stamico boss.
“We will continue drilling in the area and surrounding areas in a distance of about four kilometres. Hopes are high that there could be between 150,000 and 200,000 ounces of the precious mineral,” Eng. Ngonyani explained.
Stamico acquired the mine in November, last year at 5 million US dollars (about 8bn/-) after ABG closed it in March 2013 citing high operation costs.
The corporation is using the 11.6 million US dollars (about 18.56bn/-) rehabilitation fund it received from ABG for the closure of the mine, as part of capital to operate at the Biharamulo Gold Mine.
Eng. Ngonyani, who assumed the position on June 1, this year, said he is focused to turn around the corporation to ensure it generates money for the treasury coffers and on the other hand enable artisanal miners to employ advanced technology in their operations.
“My focus is to turn around the corporation in shortest time possible, possibly within the next two or three years and start making contributions to the treasury and shun dependence on the state for funds,” he explained.
On the other hand, the Stamico boss said the exactly value of Kiwira Coal Mine will be known in one-month time as a time of experts has been sent there to assess projects ahead of envisaged investment.
The coal mine has the capacity to generate 6MW of electricity but the intention is to boost power generation to 200MW to be injected to the national grid through a 100- km power transmission line.
Stamico’s Director of Finance and Administration Peter Gembe 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 power electricity requires this amount of coal,” Mr Gembe said.
The director hinted that several investors have expressed interests in the project, which was repossessed from Tanpower Resources last year, but stressed new investors will be picked through a competitive and transparent manner.
Mr Gembe explained further that it is only after a technical report on financial requirements of the mine which has remained idle for some years that major decisions would be made.