Board Chairman of the State Mining Corporation (STAMICO), Ambassador Alexander Muganda, made the remarks here on Tuesday during a tour of the company by members of the newly appointed board. The new board came into effect on July 2, this year.

 

Mr Muganda noted that in spite of several challenges, including low investment facing the gold mine, the workers had showed commitment and patriotism. He said that mining is among few sectors that needed high technology, promising to solve in due time some of the problems facing the gold mine.

 

Mr Muganda also hinted that plans were underway to start tin processing. The board made a similar tour in Kyerwa District on Wednesday, holding discussions with authorities on how to get enough tin for processing purposes. STAMIGOLD Acting General Manager Korodias Shoo informed the board that lack of reliable power supply was adversely affecting operations of the mine.

 

"Due to lack of reliable electricity supply one-third of the total production is directed to running generators. The generators consume about 20,000 litres per day or about 600,000 litres each month. This is very costly," he said.

 

According to Mr Shoo, high expenses in the purchase of essential materials and equipment are an impediment to the operations of the gold mine, which is located far from Dar es Salaam.

 

Over 360 workers are on permanent pay-roll while 330 others were employed by contractors and security firms, he said. STAMIGOLD produced 37,000 ounces (oz) worth 88.4bn/- since July 2, 2014 when it started rolling out gold at the Biharamulo Mine.

 

Mr Shoo said that the firm was making steady progress as its operations were slowly gaining momentum despite a myriad of challenges. "We have started mining a new open pit and have extended the life of the mine for three more years.

 

We are still doing some more exploration work and there is a possibility that the life of the mine can be further extended if we find sufficient gold reserves. About 30,000 ounces are expected to be produced next year," he said.

 

He said this year's projections would probably surpass that of last year by around 16,000 oz as the government has promised to inject capital to boost its productivity. "We are now relatively stronger compared to when we took off although more investment is needed to register robust profit," he said.Lack of reliable equipment was still one of the challenges STAMIGOLD was facing at the moment, but Mr Shoo was confident recent approach by the parent ministry promises brighter future.

 

Currently, he said, the company was operating using rented mining equipment, particularly the heavy duty ones, but according to the Acting GM, the government has shown commitment in making sure it secures its own facilities.

 

The government of Tanzania bought African Barrick Gold's Tulawaka gold mine in November 2013 and renamed it Stamigold Biharamulo. It is Tanzania's first state-owned gold mine after the country passed a law in 2010 allowing the government to own a mining stake.

 

Biharamulo Gold Mine formally known as Tulawaka Gold Mine is currently operated by STAMIGOLD Company Limited a subsidiary of the State Mining Corporation (STANNIC).

 

According to Mr Shoo, STAMIGOLD last year spent 246.3m/- to fund various projects for communities surrounding the mine. During its three years existence, the mine has made tremendous achievement including social corporate contributions.

 

Stamigold recently installed solar power equipment worth 10m/- to Mavota police post. The power supply will enable the police post to operate for 24 hours compared to 12 hours before the installation.

 

Mr Shoo listed other areas that benefited from the support as practical training to 103 students from higher learning institutions who received mining technology skills, transportation and donation of 2,000 desks to Biharamulo, Muleba and Ngara schools and construction of two classrooms and staff office of Mpago Primary School.

 

Others include the construction of a latrine at the Mavota Primary School, supply of laboratory equipment at Mubaba Secondary School, screening for cervical and breast cancer to 319 women of Mavota and Mkumkwa as well as the rehabilitation of 7-kms road from Mavota to Msalabani villages.

 

He said other areas were the installation of 15 water storage facilities for different entrepreneurship groups and supply of drugs for Mavota and Mkumkwa dispensaries.

Source : allafrica.com