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By FINNIGAN WA SIMBEYE, 2nd January 2011 @ 12:00,
THE future of foreign mining companies operating in Tanzania lies in partnership ventures with government through State Mining Corporation (STAMICO).
The chairman and Chief Executive Officer of Tanzanian Royalty Exploration (TRE) Corporation, Mr James Sinclair and the company's president, Mr Joseph Kahama said in their New Year's messages to shareholders that the arrangement is promising.
"If companies do not partner with the governments of developing nations on an equitable basis, they will not in the future obtain mineral opportunities from these mineral-rich countries," Mr Sinclair wrote in the message posted on the company's website.
TRE signed an agreement with Stamico to jointly mine exploration and development projects with 55 per cent of proceeds going to the company while the government gets 45 per cent. It's the first of a major mining deal to be signed by the multination corporation which owns claim titles for vast mining areas in the Lake Victoria greenbelt and Stamico since the passing of the 2010 Mining Act.
President Jakaya Kikwete ordered major reforms in the mining sector to allow the country earn maximum proceeds from the sector, which has benefited significantly multinationals for decades because of a poor 1997 Mining Act.
Mr Sinclair acknowledged that the country has benefited less from the sector and that it's time for change. "In 2009 Tanzania had exports of 1,000,000 ounces of gold yet it received income from these gold assets equivalent to 57,000 ounces," he wrote.
Applauding President Kikwete's leadership for the changes in the sector, Mr Sinclair ruled out fears among shareholders that gradually the government may nationalize mines. "I would rank Tanzania's leadership on a level with the best of the so called developed nations.
In this period of contagion caused by Western economic policies, Africa almost seems like a beacon of light on a gloomy horizon," Mr Sinclair wrote.
Seconding Mr Sinclair's arguments, TRE's president, Mr Kahama said, "I am sure that 2011 will be exciting for all of us at TRE. We have reached a ground-breaking agreement with the State Mining Corporation of Tanzania."
Kahama said the agreement is a maiden one in what may become the standard norm for many other companies conducting business in Tanzania, of course, with varying degrees of ownership for Stamico on behalf of the government.
Mr Kahama said as part of the partnership with the government, Stamico will tomorrow hand over a Buckreef Mine to TRE at a ceremony to be attended by the Commissioner of Minerals, Dr Peter Kafumu and Director General of Stamico, Mr Gray Mwakalukwa.
THE future of foreign mining companies operating in Tanzania lies in partnership ventures with government through State Mining Corporation (STAMICO).
The chairman and Chief Executive Officer of Tanzanian Royalty Exploration (TRE) Corporation, Mr James Sinclair and the company's president, Mr Joseph Kahama said in their New Year's messages to shareholders that the arrangement is promising.
"If companies do not partner with the governments of developing nations on an equitable basis, they will not in the future obtain mineral opportunities from these mineral-rich countries," Mr Sinclair wrote in the message posted on the company's website.
TRE signed an agreement with Stamico to jointly mine exploration and development projects with 55 per cent of proceeds going to the company while the government gets 45 per cent. It's the first of a major mining deal to be signed by the multination corporation which owns claim titles for vast mining areas in the Lake Victoria greenbelt and Stamico since the passing of the 2010 Mining Act.
President Jakaya Kikwete ordered major reforms in the mining sector to allow the country earn maximum proceeds from the sector, which has benefited significantly multinationals for decades because of a poor 1997 Mining Act.
Mr Sinclair acknowledged that the country has benefited less from the sector and that it's time for change. "In 2009 Tanzania had exports of 1,000,000 ounces of gold yet it received income from these gold assets equivalent to 57,000 ounces," he wrote.
Applauding President Kikwete's leadership for the changes in the sector, Mr Sinclair ruled out fears among shareholders that gradually the government may nationalize mines. "I would rank Tanzania's leadership on a level with the best of the so called developed nations.
In this period of contagion caused by Western economic policies, Africa almost seems like a beacon of light on a gloomy horizon," Mr Sinclair wrote.
Seconding Mr Sinclair's arguments, TRE's president, Mr Kahama said, "I am sure that 2011 will be exciting for all of us at TRE. We have reached a ground-breaking agreement with the State Mining Corporation of Tanzania."
Kahama said the agreement is a maiden one in what may become the standard norm for many other companies conducting business in Tanzania, of course, with varying degrees of ownership for Stamico on behalf of the government.
Mr Kahama said as part of the partnership with the government, Stamico will tomorrow hand over a Buckreef Mine to TRE at a ceremony to be attended by the Commissioner of Minerals, Dr Peter Kafumu and Director General of Stamico, Mr Gray Mwakalukwa.
