More than 300 mining companies -- mostly those owned by locals -- risk
losing their mineral prospecting licences should the government establish that
they have overstayed in utilising the permits.
On Wednesday last week, the government, through the commissioner for
Minerals, Mr Ally Samaje, directed 343 applicants for licences to report at the
ministry headquarter for rectification of irregularities associated with their
applications.
The right can be renewed before mining development with a maximum
period of seven years subject to submission of mining development report after
every three years.
But the Energy and Minerals minister, Prof Sospeter Muhongo, told The
Citizen recently that his ministry found out that most registered mining
companies have held their mineral prospecting licences for over five years.
“We have established that almost 90 per cent of mining firms, owned by
Tanzanians, have held mineral prospecting licences for up to 10 years without
putting them into fruition. This is a clear contravention of procedures for
possessing mineral prospecting licences,” said Prof Muhongo.
According to Prof Muhongo, the fact that most firms have held the
licences for between five and ten years without utilizing them was a clear
indication that most holders were speculators seeking to become middlemen.
“This
approach has been very discouraging to would be genuine investors, as such it
affects country’s investment growth in the sector,” said the minister.
The Tanzania Chamber of Mines and Energy (Tcme) chairman, Mr Joseph
Kahama, said that it was a normal thing for the responsible ministry to assess
the mineral prospecting rights after every three years to ascertain the status
of mining development in the country.
“Each investor is supposed to submit mining development report after
every three years and failure to do so means that the licence is invalid. The
right can be renewed before mining development with a maximum period of seven
years subject to submission of mining development report after every three
years,” said Mr Kahama.
The government directive, issued on Wednesday last week, the
Commissioner for Minerals, gave a 30-day ultimatum for the firms to rectify the
details to their applications, noting that failure to do so will see the Mining
Act, 2010 being implemented.
Apart from small investors, mostly local ones, the directives also
applied to giant multinational mining companies, including Uranium mining
companies, Mantra Tanzania Ltd, Uranex and Western Metals Uranium Ltd.
The list also includes: Mbeya Cement, Integrated Cement Company Ltd,
Tanzania Zongfa Construction Company Ltd, Frontier Resources Ltd and Sinoafrica
Ltd.
Recently a prospective Indian Investor, Abhijeet raised concern that
most local investors had been lining up to possess mineral prospecting licences
without developing them.
The director of Overseas Africa of Abhijeet, Mr Abdularahman Khan, said
that Abhijeet has been facing obstacles to establish joint ventures with local
investors in the mining sector because most of them lacked well developed
mines.
Mr Khan said that the Indian company had set aside at least Sh2 billion
for supporting small scale miners in the country.
In the negotiations that the Abhijeet management engaged with various
local stakeholders, Mr Khan discovered that most only wanted to make quick
money through selling mining licences, rather than actually taking the risks to
invest in production.
“We have been negotiating with local miners to try to join forces in
mining activities. But it seems to us that most of them just prefer to sell
their mining rights to foreigners for quick money only,” Mr Khan said.
According to him, the most important thing is to educate Tanzanians for
engaging in serious business and take risks so that they invest in the
sustainable mining projects.
Source: The Citizen,http://www.thecitizen.co.tz, reported by Ludger Kasumuni
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