Small-Miners' Welfare On Simbachawene Plan

Posted on : Thursday, 29th January 2015

 THE new Minister for Energy and Minerals, Mr George Simbachawene, on Monday outlined four areas that would characterise the first days of his leadership at the powerful docket, including empowering small-scale miners.

At a brief ceremony held at the ministry's headquarters in Dar es Salaam on Monday, Mr Simbachawene mentioned the four areas as empowering small scale miners and enhancing their ability to compete and work with the Energy and Water Utilities Regulatory Authority (EWURA), to incorporate regular drops in global oil prices within the local context.

He would also look towards the preparation of a gas-fired power sector and continue with the rural electrification agenda.

He was flanked by his deputy Minister Charles Mwijage where they also informed technocrats at the ministry that the duo would be more of coordinators galvanising the experts to implement the Chama Cha Mapinduzi (CCM) manifesto at the ministry.

Mr Simbachawene used the opportunity to inform the public that he would soon work on the highly held view that there is secrecy in the gas production sharing agreements (PSAs) and return to the public with an answer as to why such a sentiment is in the public sphere.

"Let me settle in the job in the next few days and go through these documents to find out why there is such a sentiment. This is because PSAs are standard, they have standard norms.

And some of these documents have been seen by MPs and senior government officials, " Mr Simbachawene commented.

He added: "So let me go through them and find out what that sentiment is aimed at... whether it wants the documents to be posted somewhere for them to see.

Let me see what it means first," he stressed. Reputed as a 'gentleman' among political circles, the energetic energy minister said he would have to study what some circles have referred to as secrecy and come up with a statement in the next few days.

Late last year, TPDC was asked to submit the oil and natural gas production sharing agreements (PSAs) for scrutiny by the Public Accounts Committee.

Addressing experts at the ministry, the minister said the appointment to the docket is a challenge but also an opportunity for them to serve the country.

On oil and gas, he pledged to ensure that the gas endowment benefitted the country by optimally serving all local needs first before thinking about exporting.

"We want to ensure we use the gas for electricity generation "This is better because it can reduce costs of power four-fold. We should also prepare the public sector for it to build capacity in running the oil and gas sector," he emphasised.

He pledged to work with EWURA to work out a formula that will ensure that global changes in oil prices are reflected in local fuel prices. On small miners, he pledged to ensure no class benefits at the others.

Recently, the government and the Tanzania Investment Bank (TIB) allocated 2.5bn/- as interest subsidy to small-scale miners for the 2014/15 financial year.

The budget will cover procurement of mining equipment, chemicals and training programmes. Besides, the government is also imparting knowledge to small-scale miners on the use of modern mining equipment so that they can be able to use them effectively.

On his part, the new Deputy Minister, Mr Charles Mwijage, gave his history with the sector, recalling that he was employed by the Tanzania Petroleum Development Corporation (TPDC) in 1983 "as a very young man."

Mr Simbachawene and Mr Mwijage were appointed to the Cabinet by President Jakaya Kikwete on Saturday in a minor reshuffle necessitated by the resignation and axing of several ministers and government officials in the aftermath of the Tegeta Escrow account scandal.