Tag Archives: mining

Government Should Be Transparent While Making Contracts With MNCs In Mining

acacia mining

Finnish ambassador Pekka Hukka said the Tanzanian government need to be transparent in the mining sector while making contracts with multinational companies. Speaking on the sidelines of a tree planting event on Saturday and hailing President John Magufuli he added members of the public under such procedures will be made aware of their own resources. The ambassador mentioned, “It’s high ...

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Tanzania’s mining sector defies odds, posts impressive growth

Tanzania’s mining sector is steadily growing spouting significant earnings to the economy and increased benefits to the people, despite setbacks of falling gold price in the global market. The largest ever found tanzanite gemstone by TanzaniteOne. The National Bureau of Statistics (NBS) said last week that mineral production increased last year despite falling prices of gold at the global market. The sector recorded an impressive growth of 10.4 per cent up to the third quarter of last year compared to 1.3 per cent in the same period the previous year, according to the National Bureau of Statistics (NBS). The NBS’ Director for Economic Statistics, Morice Oyuge said in Dar es Salaam last week that 10,189 kilogrammes of gold was produced in the third quarter of last year up from 9,150 kilogrammes in the third quarter of 2012. He said tanzanite production increased to 5,140 kilogrammes in the third quarter of 2013 compared to 3,913 kilogrammes in the corresponding period of the previous year. “The growth rate is attributed to the increase in mining and production of gold and tanzanites as well as variations of prices in the global market,” he said. Available data show the mining sector recorded an impressive growth rate of 7.8 per cent in 2012, up from just 2.2 per cent in 2011. The growth is attributed to increased investments in the capitalintensive industry. The growth in the sector led to an increase in its contribution to the national economic output. Official statistics show the contribution of the sector to the economy increased from 3.3 per cent to 3.5 per cent year-on-year from 2011 to 2012. It is estimated that the contribution of mining to GDP will reach 10 per cent by 2025. Increased production of gold in Tanzania reflects the global picture. Despite plummeting gold prices, global production of the precious metal reached a record in 2013 for the fourth consecutive year. Thomson Reuters GFMS survey estimates that total gold mine supply reached 2,982 tonnes last year, up 4.1 per cent from 2012. In the view of Thomson Reuters GFMS analysts, the rise in global gold production is not surprising. Many mines boosted their output. In some cases, miners processed greater quantities of ore in order to maintain revenue and contain costs at lower gold prices. To put it simple; gold mining companies focused on boosting production to bring operating costs down to profitable levels at the lower gold prices. Secondly, major new gold mining project developments that were already under way had come on stream, adding to the global total. Gold ended 2013 at $1,202, per ounce, 28pc lower than at the beginning of the year.

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TanzaniteOne raises 6bn/- for mine restart

Richland Resources, a parent company of TanzaniteOne, has completed a deal with the State Mining Corporation (STAMICO) that confirms its tanzanite licence for the next ten years. STAMICO will own the licences on a 50/50 basis going forward and pay Richland, TanzaniteOne Mining’s parent company, 4.0 million US dollars out of future profits for all of the work it has put in developing the mines. According to the Richland’s info on website, the agreement has enabled it to raise 2.76 million UK pound (6.07bn/-) to recapitalise the tanzanite business operation which was marred by heavy losses recently in part due to illegal miners occupying its licence area. The fund set to restart the tanzanite mining at Mirerani, Manyara Region, after exceeding the minimum it required from a placing and open offer, heavily backed by directors and five investors. Four of the miner’s directors doubled or more than doubled their stake, while five investors are now significant shareholders with holdings of 4.4 per cent or higher. With the help of the Tanzanian government and its new partner, STAMICO, Richland has started to wrestle back its operations from the illegal miners and will use the money to restart. Bernard Olivier, Richland’s chief executive, said: “We are very pleased with the success of the placing and open offer which have allowed all our shareholders the opportunity to participate.” Under the new shareholding agreement TanzaniteOne, Richland’s tanzanite subsidiary will remain the operator, with net profits shared equally with STAMICO. Its cutting factory has been awarded a three year contract to polish and market the stones produced. Trading arm TanzaniteOne Trading limited is not part of the agreement, while Richland’s other asset on Tanzania, the Tsavorite Project, is not included. Bernard Olivier, Richland’s chief executive, said as well as a 10 year mining agreement the deal secured a clear alignment of interests with the government and people of Tanzania.

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IMF Completes First Review Under the Policy Support Instrument for Mozambique

MAPUTO, Mozambique, January 17, 2014 –The Executive Board of the International Monetary Fund (IMF) has completed the first review under the three-year Policy Support Instrument (PSI) for the Republic of Mozambique. The PSI for Mozambique was approved in June 2013 (see Press Release No. 13/231). The Board’s decision was taken on a lapse of time basis. Mozambique’s macroeconomic performance remains strong with real GDP growth for 2013 estimated at 7.1 percent and inflation remains moderate. The PSI-supported program is broadly on track. All assessment criteria were met and most indicative targets, but there was some slippage on structural reforms. In spite of risks stemming from the uncertain global economy, the outlook remains favorable and growth is expected to be sustained in the medium term by the natural resource boom and infrastructure investment. A recent government guarantee for large-scale borrowing by a public enterprise has raised transparency and prioritization issues that point to the need to strengthen investment and macro-economic planning. New risks associated with the political/security environment have emerged.

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Lake Zone regions register increase in GDP

In 2012 the gross domestic product (GDP) in the Lake Zone regions increased by 18.9 per cent, raking in 13.3trn/-, up from 11.1trn/- attained in 2011. Bank of Tanzania (BoT), Mwanza Branch Manager, Mr Musa Mziya, told the ...

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Mzumbe varsity to train gas, oil experts

Mzumbe University, Dar es Salaam campus, in collaboration with South African based University, Stellenbosch, is preparing a Master Degree curriculum in managing huge projects in mining, gas and oil in the country. The grand idea is envisaged at a time when Tanzania is in the process to explore ...

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IMF Executive Board Concludes 2013 Article IV Consultation with Zambia

LUSAKA, Zambia, December 20, 2013 – On December 11, 2013, the Executive Board of the International Monetary Fund (IMF) concluded the Article IV consultation with Zambia. Zambia has achieved strong and sustained economic growth over the past decade due to improved macroeconomic management and increased copper production; however, risks have over the past year increased with rising fiscal imbalances and lower reserve coverage. Robust output growth continued in 2012 at slightly above 7 percent, driven by agriculture and services, but is slowing in 2013 due to a weaker harvest. Expansionary fiscal policies, mainly from spending on subsidies and wages, have raised the projected 2013 deficit to about 8½ percent of GDP. Rising imports together with weakened copper prices are expected to move the current account into deficit, and international reserve coverage has fallen to 2.3 months of next year’s imports. Inflation has remained contained as monetary policy has been gradually tightened. With the Central Bank having raised its policy rate in two steps of 25 basis points each, consumer price inflation is projected to stay broadly unchanged at 7½ percent in 2013 despite the withdrawal of fuel and agricultural subsidies earlier this year, as well as the more recent increase in civil service wages. The nominal exchange rate has depreciated recently, but has remained broadly in line with inflation differentials to trading partners. The banking sector has grown steadily and remains profitable and well-capitalized. Private sector credit growth has started slowing down in 2013 from a rapid increase in the second half of 2012. Nonperforming loans declined to 8.2 percent of total loans in mid-2013 from 15 percent in 2010...

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