Russian firm back in Tanzania uranium project!

A uranium mine. Tanzania has huge deposits of uranium.

Monday, April 4 2011
By MIKE MANDE - The East African

The Tanzania uranium mining project is back on track after an Australian firm Mantra Resources Ltd agreed to lower its offer to Russia's JSC Atomredmetzoloto (ARMZ) from $1.16 billion to $944 million.

ARMZ had said last week it had shelved plans to purchase the Mkuju uranium assets in southern Tanzania from Mantra over the recent Japanese nuclear plant crisis.

The transaction, to be closed in July this year, will see ARMZ acquiring all of the issued share capital in Mantra including its flagship Mkuju River project in Tanzania.

Construction of the mining plant in southern Tanzania will start in the first quarter of 2011 with operations beginning in the fourth quarter of 2013.

Last week, ARMZ had given Mantra a notice that the ongoing nuclear crisis in Japan could hurt its operations.

ARMZ, however, indicated that it was willing to explore how the transaction could proceed by way of an alternative approach.

Tony Devlin, managing director of Mantra Tanzania said the revised transaction is in Mantra's best interest taking into consideration the current global equity market conditions and increased uncertainty for the uranium sector.

Mr Devlin said the capital cost for construction of the mining plant including all associated infrastructure stands at $298 million.

Minister for Energy and Minerals, William Ngeleja, told The EastAfrican that the Mkuju River Project is shaping up into a truly world-class venture and has the potential, in its first phase of development, to position Tanzania as the third, and perhaps even the second largest producer of Uranium in Africa.

Mr Ngeleja said that the pre-feasibility study in March 2010, indicated that, once developed, the mine would produce 1,650 tonnes of uranium oxide a year, thus overtaking the US-which produced 1,560 tonnes in 2009-to become the eighth largest producer in the world.

"Tanzania will produce three times more uranium oxide than South Africa," he said.

The mining plant will have an average annual production of 1,650 tonnes per annum with the potential to expand production in the second phase of the project.

This will be the first major mining development in south eastern Tanzania, bringing jobs to an under developed region with a foreign direct investment of $450 million generating approximately $250 million in annual foreign currency receipts.

The government expects about $630 million in royalties, income and employee taxes directly from the project based on the 15 year estimated life of the mine.

With that High Quality Uranium we have no one will leave that time BOMB!!!

We do have some high Quality Minerals everyone is gready!!!

a continuation of a resource curse in tz. Expect more corruption, people become poorer than countries who never had such resources.
Mungu ibariki Tanzania.

Tumeshaibiwa hapa, yaani kampuni ya Australia(Mantra Tanzania) imehodhi eneo lenye madini ya uranium Tanzania buree bila malipo, halafu wana -issue shares feki za makaratasi ya thamani ya dola za kimarekani US$ 944 milioni ambazo kampuni ya Russia (ARMZ) itadai iliilipa kampuni ya Mantra .

Baada ya hapo kampuni ya Russia ARMZ itaweka gharama feki ya US$ 944 kama capital investment yao plus gharama zingine za equipment katika vitabu vyao vya mahesabu (financial statement zao za cash-flow, investment and assets) na kisha kwenda mbio mpaka wizara ya Fedha Tanzania, Wizarani Nishati na Madini kisha Tanzania Investment Centre na Tanzania Revenue Authority kuomba 'incentives /exemptions' mbalimbali za 'wawekezaji' mfano kuanza tax-holiday miaka 10 na mazagazaga mengine ya mitambo yao kutolipiwa kodi.

Jamaa watayachimba madini ya uranium bila kulipa kodi ya aina yoyote na kudai kutokana na jinamizi la 'FUKUSHIMA' wanaambulia hasara miaka yote, kisha baada ya miaka kumi wanauuza mgodi kwa kampuni nyingine anabayo nayo itadai tena tax-holiday na incentive zingine toka Tanzania investment centre na Tanzania Revenue Authority .

POAC na Bunge mpo? nadhani kuna haja ya miradi hii kupitia na kamati za Bunge wakutane na watetezi wa Watanzania a.k.a wabunge wa CHADEMA maana CUF/NCCR ni sawa na CCM tu. Wabunge wetu wachache wa CHADEMA kama jamaa(CCM) wakitumia wingi wao kukataa hoja zenu basi endeleeni kutumia jukwaa kuishitaki serikali ya CCM kwa wananchi mpaka kieleweke.

Tumeshaibiwa tena hapa

Hii nchi hadi tupinduane tu!

Tuna utaalam wa kudhibiti madhara? Ya Japan tumeyasikia?

Kwa nini wasiitumie baadhi kuzalishia umeme(Nuclear power plant)? 1650 tonnes a year si mchezo,na baada ya miaka 15 ya uzalishaji tutaachiwa mashimo! Kweli ni lazima tupinduane...

ndutu said:

Tuna utaalam wa kudhibiti madhara? Ya Japan tumeyasikia?

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You are confusing yourself, FUKUSHIMA is a nuclear power plant and not a mining project.Uranium is one of the raw materials for producing nuclear energy and bombs.

Did they pay tax on this sale?

Hao Mantra wamelipa Tax kiasi gani kwa serikali hadi walivyokuwa wanauza shares zao kwa warusi??

Tushaibiwa hivi kuwa watanzania wazalendo kweli hivi sasa!!!!

:help:

Shamba la bibi..kama kawa..viongozi wanapiga porojo tu kwenye vjiwe vya gahawa huku issue sensitive ka hizi wameweka ma****ni.

Uzuri ni nini CCM haitatawaka Mwaka 2015 so all these face contracts will be reviewed

It will be just the same as Saud Arabia when they take over the ownership and leave the investors with only drilling expertise

I don't understand why our Govt is being crippled by rules and shackles of world bank and IMF, it is beyond my comprehension that in 15 yrs the govt is expected to earn only 630 mil. US $, this is a peanut. You know what IMF and world bank established something called structural adjustment program which prevent govt from involving itself in business and leave only the private sector to involve in business while they know exactly that our private sector don't have enough capital.

As a result these western people have now become the owners of our precious resources due to the fact that their private sector has enormous of capital therefore able to transfer capital to third world countries like Tanzania - new colonialism. I would suggest that at the beginning the govt should contribute in terms of capital and therefore become share holder but with the plan to sell these shares to Tanzanians, this is the only way Tanzanians could benefit from the presence of minerals in our country.

I have no doubt that if the status quo prevails we will always remain grumbling in vain

“Tanzania will produce three times more uranium oxide than South Africa,” he said.

The mining plant will have an average annual production of 1,650 tonnes per annum with the potential to expand production in the second phase of the project.

This will be the first major mining development in south eastern Tanzania, bringing jobs to an under developed region with a foreign direct investment of $450 million generating approximately $250 million in annual foreign currency receipts.

The government expects about $630 million in royalties, income and employee taxes directly from the project based on the 15 year estimated life of the mine.

This is rubbish, Barrick walisema hivi hivi tukaona no reports of profit for a long time. Hivi wakisema “Tanzania will produce three times more uranium oxide than South Africa,” he said.Wanatuona sisi wajinga maana production does not equal profit. ukiangalia juzi tu wametangaza TZ imepata 1.35 billion dollars kutokana na Gold sales lakini hatuoni wala kuelezewa vizuri hela inaenda wapi. Yani mi naona kibinafsi kutangaza production bla bla ni kwa ajili ya sifa tu na haitufaidishi kama watanzania.:angry: