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Dar to reap big from nickel

Dar to reap big from nickel

TANZANIA will finally start reaping from its world’s largest nickel deposit, following on Wednesday’s issuance of mining license to Tembo Nickel Corporation to begin the mining project that would see the country earn 7.5 billion US dollars (about 17.5tri/-) during the execution. 

Based in Northwest Tanzania, the nickel deposit project comprises an on-site mineral resource of 58 million tonnes including over 1.52 million tonnes of nickel, a crucial material used in the manufacture of electric vehicles.

According to the Minerals Minister Dotto Biteko the project would also offer 978 direct employments to Tanzanians, when the Tembo Nickel Corporation undertakes course with 412 million US dollars investment.

The Tembo Nickel Corporation is a joint-venture company where the government owns 51 per cent share, while the United Kingdom mining company- Kabanga Nickel has 49 per cent share.

The event to hand over special mining license to the Tembo Nickel was held in Dodoma yesterday and graced by Speaker of the Parliament, Mr Job Ndugai, along with launching the Tanzania Extractive Industries Transparency Initiative (TEITI) 11th report for the period of July 2018 to June 30th, 2019.

Minister Biteko commended the Tanzania negotiation team in the Tembo Nickel led by Minister for Constitution and Legal Affairs, Prof Palamagamba Kabudi that enabled the government to have 51 per cent share and 49 per cent for the investor.

Mr Biteko said the Tanzania Extractive Industries Transparency Initiative (TEITI) reports have been of great success, as it gives the government a chance to know the contribution of the extractive industry in the national economy.

He said before the establishment of the TEITI there were gaps, but with the prepared reports, there is now transparency that is necessitating compiling another report on the contribution of the small scale miners after realizing that gold mining contribution has risen.

Mr Biteko said the decision was due to the fact that previously the contribution of the gold mining was only four per cent, but with TEITI it has gone up to 30 per cent.

Gracing the event, Speaker Ndugai insisted on discipline, patriotism and commitment among public servants, who will be part of the mining projects, so that the government gets its targeted share.

He said the Parliament will keep a close eye and monitor the project implementation, as well according the Parliamentary Standing Committee on Mining and Energy needed support for checks and balance of its operations.

Elaborating, Speaker Ndugai said the mining industry has attained major transformation in the recent years, where the Parliament is fully involved, thus making it easier to have in place laws and contracts.

He said they will be amending the laws on mining from time to time so that the country benefits from the revenue generated from the industry.

Equally, Mr Ndugai underscored the importance of the public to engage in the projects through local content policy, saying opportunities are up for grab, thus the local communities should take advantage.

On his part, Chairman of the Parliamentary Committee for Mining and Energy, Mr Danstan Kitandula said the TEITI reports are key working tools, which they will rely on.

He said the transparency report have been showing how the mining sector has been advancing, as it shows growth of the extractive industry.

Mr Kitandula said they have been pleased with issuance of the special mining license, and called for the timely implementation and completion of the project take off.

Permanent Secretary in the Ministry of Minerals, Prof Amos Msanjila said they have printed 11 reports and the government has received 3 billion US dollars from the extractive industry.

“The government is ready to issue a Special Mining Licence (SML) to Tembo Nickel. I have directed the Tembo Nickel Chief Executive Officer (CEO) to submit the work plan within three days,” he said.

On his part, Ngara legislator, Mr Ndayisaba Luholo appealed to the residents to grab the opportunity by doubling production of cash and food crops, which would be in high demand when the project is in full swing.

The signing of the long awaited Nickel mining agreement between LZ Nickel Limited and the Tanzanian government on January 19th, this year, was witnessed by the late President John Magufuli, who assured investors that Tanzania is politically stable and invited them to exploit the abundant resources available in the country.

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Author: NELLY MTEMA in Dodoma

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