Africa-Press – Tanzania. PRESIDENT Samia Suluhu Hassan has main- tained Tanzania’s stance to add value to its minerals in order to yield more benefits from the pre- cious resources.
Speaking yesterday in Dar es Salaam, President Samia insisted that the country will no longer be a primary mineral producer, as it is determined to take full advantage of mineral value chains.
“We will mine, refine and process the minerals domestically. It’s unavoidable and there is no discussion on this,” said President Samia during the signing of the various agreements between the government and four mining companies whose investments stands at 1.7tri/-.
The Head of State called on prospective investors to comply with the government’s stance to optimize value addition and accelerate the development of integrated mineral-based industries.
She vowed to continue the good fight started by her predecessor, the late Dr John Magufuli, who kickstarted reforms in the mining sector to ensure the country’s valuable resources benefit the country and its people.
“Every journey begins with a step and this journey was started by our fellow, Dr John Magufuli whom God gave the vision and courage to say ‘no’, it is time for our resources to benefit the country and the people in general.
“I can assure you that the fire started by the former President the late Dr Magufuli will not easily be put out,” said President Samia yesterday.
The signing ceremony took place in Dar es Salaam, yesterday, whereas the President directed the Ministry of Minerals to effectively supervise all issues related to mineral value addition activities.
She also directed the Minister for Minerals to work on ensuring the Tanzania Gemological Centre (TGC) trains Tanzanian students well on how to add value to gemstones.
President Samia also tasked the minister to ensure the State Mining Corporation (STAMICO) gold refinery obtains the required certificate for the factory to start its operations.
Ms Samia argued that taking advantage of the full value chain in the mining sector will enable the country to create more jobs for its youth and increase government revenue through the sale of higher value products.
She revealed that the country was open for investors who would create mineral value addition in the country’s extractive sector.
President Samia observed that one of the mining companies failed to sign the agreement yesterday because they had an issue with the value addition component.
“The company had disagreed with the idea of adding value here in the country which is why today it failed to sign… Since you have already cleared the concern, I give the ministry my blessing to go ahead with the signing of the agreement on another day,” she said.
President Samia was of the view that a country rich in abundant natural resources can only benefit from her wealth if it exploits the resources to boost the socio-economic development of the nation.
She said the mineral sector has continued to grow each year with its contribution to the country’s GDP reaching 6.7 per cent last year.
The goal is to ensure by the year 2025 the sector is able to contribute by 10 percent in the GDP, she said.
“Mineral Minister Dotto Biteko told us in 2021 the ministry surpassed the set target, but also this year the target is 650bn/-, it’s clear they can surpass the target…this is a challenge to the ministry.
After the established project kicks off its operations, the room for arriving at 10 per cent is open,” stated President Samia. On the other hand, President Samia directed the ministry to implement strategies for controlling smuggling and illegal trade in minerals in the country which still persists.
“All those with the responsibility to control smuggling of minerals should fulfill their obligation,” she insisted. Instead of being the source of the problem, they should protect the country’s natural resources…defence and security organs in collaboration with local government authorities should carry out regular crackdowns to identify and take serious measures to offenders.”
She also called upon investors to observe laws and guidelines of the land in environmental protection, directing the National Environment Management Council (NEMC) to carry out their responsibility immediately to avoid environmental challenges.
Similarly, she advocated for public involvement from the initial stages of projects to bring ownership and overcome chaos at advance stages. Speaking during the event, Prime Minister Kassim Majaliwa assured the President that they will work on all her directives and pledged to work diligently to ensure Tanzania benefits from its natural resources for the betterment of its people.
On his part, the Minister for Constitution and Legal Affairs, Prof Palamagamba Kabudi who led the negotiation team mentioned the companies involved in the signing of the agreements including Blackrock Mining Limited (Australia) which will be mining graphite in MahengeUlanga, Morogoro through Faru Graphite Corporation Joint Venture Company.
Also, Strandline Resources Limited, whose headquarters is in Australia, will be mining heavy mineral sands at Fungoni Kigamboni in Dar es Salaam through Nyati Joint Venture company.
Others include Nyanzaga Company, which has established Sotta Mining Corporation Ltd in Sengerema for mining gold and Petra Diamonds Limited, which has inked a new agreement for the re-development of Mwadui Mine in Shinyanga through Williamson Diamond Limited Joint Venture Company.
“Through the Williamson Diamond the government will maintain a shareholding of not less than 16 per cent non-dilutable free carried interest from the previous 25 per cent to 37 per cent of all shares owned by the company among many other benefits,” said Prof Kabudi.
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