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Massive certified high-quality kaolin deposits untapped at Pugu Hills despite high demand worldwide

Discussion in 'Biashara, Uchumi na Ujasiriamali' started by nngu007, Apr 29, 2012.

  1. nngu007

    nngu007 JF-Expert Member

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    Sun, Apr 29th, 2012

    Tanzania |Sunday, April 29th 2012


    Former German kaolinite mine at Pugu Hills Forest Reserve

    Huge reserves of certified high-quality kaolin deposits lie beneath the magnificent Pugu Hills in Kisarawe district, Coast region. However, despite the growing demand for the product worldwide, the resources remain untapped.

    Reputable geologists, both local and foreign, have confirmed that a total of 2.3 billion metric tonnes of kaolin are located in Pugu, hardly 30 kilometres away from
    Dar es Salaam. The reserves are known to be of sedimentary origin with similar properties to kaolin deposits found in Georgia, in the US, currently the leading producer in the world.

    Kaolin is used as an input in industries to manufacture paints, finished leather, paper industries, tooth paste, pharmaceuticals, fertilizers, ceramics, chalk rubber and many others. Official Geological Survey reports by the State Mining Corporation (STAMICO) indicate that kaolin reserves in Pugu are of high quality in the sense that they have high brightness and can be used for paper coating which is the largest application.

    Currently, the average global market for Kaolin is US Dollar 600 per metric tonne depending on the grade and quality. The market is readily available as COMESA and SADC region has a potential demand of 300,000 metric tonnes worth 270bn/-.

    Stamico report further reveals that kaolin reserves in Pugu enclose one of the world's largest kaolin deposits and the area has a long history of small scale mining operations. These started in the 1950s and were initially limited to drift mining for production of lime, ceramics and tiles.

    An experienced Geologist, Dr Charles Kaaya, has said that information about the ‘dormant kaolin deposits' should serve as a wake-up call to the government to supervise serious investment and large scale commercial production to add
    Tanzania to the list of leading kaolin producers in the world.

    "Enormous revenue for the country's development could be generated through meaningful investment in Pugu kaolin mining. Moreover, many other sectors such as textile industry, paper making, production of plastic materials, manufacture of fertilizers, pesticides without persistent effects, ceramics and other uses of kaolin will be established to earn the country colossal revenue," Kaaya said.

    Prof. Damian Urassa, a retired lecturer, Geology Department, University of
    Dar es Salaam questioned the rationale for Tanzania to remain poor depending on foreign budget support while heavily endowed with a great potential for gold, base metals, diamonds, ferrous minerals and a wide variety of gemstones.

    "Kaolin classified among other industrial minerals such as soda, gypsum, phosphate and dimension stones are available at attractive economic rates. But the kind of neglect on such a non environmental destructive engagements (kaolin production) is unforgivable. This can earn the country billions of foreign exchange, still nothing is happening," Urassa remarked.

    Mwamtumu Ngalupila, University of
    Dar es Salaam finalist, Geology Department, advised the government to form an independent mineral authority with the mandate to identify, develop and advise on the best way to manage the mineral sector.

    "The government should make efforts to sponsor study tours abroad for local specialists to learn from their counterparts how best to manage important mining. Such initiatives will benefit the nation instead of fusing on hurried privatization to foreign firms ending up receiving insignificant royalties," Ngalupila warned.

    According to US Geological Survey report published in 2010 by the Industrial Minerals Magazine, more than 400 million tonnes of kaolin has so far been produced from the deposits in Georgia.

    "Within the next few years the kaolin production in Georgia will be downsized because of the depletion of reserves… Kaolin is an environmentally safe material with no adverse health problems as long as the fine particle dust is controlled.

    The open pit mines in US and Brazil are reclaimed, so that the land can be used for agriculture, forestry, or recreational projects," reads part of the report.From the web we learn that global demand for kaolin is forecast to grow nearly two per cent per year to 25 million metric tonnes in 2013. Over the forecast period, demand for kaolin in paper production is expected to improve, offsetting an expected slowdown in the ceramics market.

    Developing countries are becoming increasingly important to global kaolin demand. In 2008, the advanced economies of Japan, the US and Western Europe accounted for slightly more than one-half of kaolin consumption, from two-thirds just ten years earlier.

    Again, demand for kaolin in paper is forecast to rebound from the declines seen between 1998 and 2008. Over that period kaolin suffered from competition with alternative materials (notably calcium carbonate), and that competition is expected to moderate in coming years.

    Emerging markets such as China are expected to post strong gains as their paper industries expand. International trade in kaolin is widespread, with approximately one-half of kaolin consumed outside of its country of origin in 2008.

    This is partially due to the concentration of kaolin production in the US, China and Brazil. Clarifying on the economics of kaolin and its uses globally, Swedish researchers, Hogqvist, Maria, Nummelin, Saara, Stahl Magnus, have established that Paper Filling and Coating take at least 45 per cent of the global production of kaolin.

    Other uses include Refractory (16%), Ceramics (15%), Fibreglass (6%), Cement (6%), Rubber and Plastics (5%), Paint (3%), Catalyst (2%) and others (2%).World producers of kaolin are US, Mexico, UK, Turkey, Brazil, Spain, Czech Republic, Argentina, France, Iran, Ukraine, Germany, Indonesia, South Korea, Australia, and China producing 600,000 tonnes annually which is not enough and currently in need of imports three times its production capacity.

    Responding to the question whether there were any immediate or pending plans by the government to allow investment for viable production of kaolin in Pugu Hills, the Deputy Minister for Energy and Minerals, Mr Adam Malima, said he could not remember instantly any arrangements which might lead to commercial exploitation.

    "I will inquire from STAMICO officers if they have information about any planned investment in the exploitation of Pugu kaolin reserves," Malima said.

    By BILHAM KIMATI, Tanzania Daily News

  2. nngu007

    nngu007 JF-Expert Member

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    Our Kaolin is same grade as world producer USA state of Georgia, so we will be second world producer...

    Let's leave it untapped until a viable government is in the Office...

    We are tired of those who are Fisadi's buying Houses and leave majority poor
  3. Captain22

    Captain22 JF-Expert Member

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    That is just a fraction of our vast untapped mineral deposits. We have huge coal deposits, huge iron deposits, the list can go on and on. But as pointed in the post above, we first need a serious, committed viable government before we start exploring these untapped mineral reserves.
  4. MD25

    MD25 JF-Expert Member

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    Kikwete akisikia tu, lazima awalete 'wabia' wenzake...
  5. Kituko

    Kituko JF-Expert Member

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    by product ya hiyo Kaolin ya hapo pugu ni QUARTZ CRYSTALS, ambayo kwa miaka mingi (QUARTZ) ndio iliyokuwa inatumika kutengenezea glass, katika kile kiwanda chetu maaRufu cha cha zamani Vioo (KIOO LIMITED)
  6. K

    KALABASH JF-Expert Member

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    Captain22: You have made a very valid observation! However and now that this vital information has been made open to the vultures; I say to you: do not be surprised to learn before the end of the year that a mining contract for Pugu Kaolin will have already been signed. This is Tanzania as we know it.
  7. Kigarama

    Kigarama JF-Expert Member

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    Jamani nngu007 hebu muwe mnatuacha angalau siku moja tukae bila ya machungu. Lakini kabla ya kufikiri kuyachimba nadhani njia rahisi ni kuweka mfumo mzuri na serikali nzuri kwani kwa mfumo huu na serikali hii ni bora huo udongo kwa ajili ya kutengenezea vitu vya kauri ni bora ulale hapo hapo ulipo kwa amani!!
  8. Red Giant

    Red Giant JF-Expert Member

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    hivi hii ndio wanatengenezea vyombo vya udongo?