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Tanzania mining firms oppose ban on mineral exports
PRINTRATING
A mine in Tanzania. The government wants all minerals processed locally. FILE PHOTO | AFP
By KENNEDY SENELWA
Posted Wednesday, March 22 2017 at 16:56
IN SUMMARY
Mining companies are facing vast capital outlays and potential losses as a result of a ban on exports of unprocessed minerals by Tanzania.
Energy and Minerals Permanent Secretary Justin Ntalikwa said the ban was in line with the value addition emphasised in Tanzania’s Mineral Policy of 2009 and the Mining Act of 2010.
In addition, Prof Ntalikwa said the ban is meant to generate revenue, create jobs and promote technology transfer.
“The government will provide any necessary support to stakeholders involved in mineral beneficiation in the country, particularly smelting and refining of minerals,” he said.
A mining executive, however, said some minerals like iron ore are exported to Asia and Japan because their reserves cannot support investment in a smelting plant in Tanzania.
“A study done in 2011 showed a smelting plant in Tanzania will cost $500 million. Raising the money will be difficult as smelting cannot be profitable in the country,” the executive said, adding that a steady supply of power from the national grid is also a challenge.
The Ministry of Energy and Minerals on March 2 banned the export of concentrates with ores of metallic minerals such as gold, copper, nickel and silver in order to promote value addition in the country.
But analysts at Investec warned that the ban could scare away investors.
Tanzania Chamber of Mines and Energy (TCME) director general Gerald Mturi said the organisation will share with government and stakeholders the results of an ongoing assessment of the ban on exporting metallic ores.
TCME is expected to engage the government and industry stakeholders to address concerns as extractives firms favour a phased approach to a ban on the export of concentrates with metallic ores while developing local smelting capacity.
Tanzania’s move comes after Uganda in August last year lifted its ban on exporting of minerals ores, including copper, tungsten, coltan, phosphates and iron. The Uganda Chamber of Mines and Petroleum (UCMP) had, been lobbying for lifting of the ban, saying it had caused job losses.
Tanzania in November last year, banned imports of gypsum used for making cement and coal to boost the use of domestic resources in the sector.
Acacia Mining Plc, which owns the North Mara, Bulyanhulu and Buzwagi mines in northwest Tanzania, has stopped export of metallic mineral concentrates due to a directive by President John Magufuli.
“In 2016, gold or copper concentrate amounted to approximately 30 per cent of group revenues. Acacia has ceased exports of concentrate and is seeking clarification,’’ said Acacia’s investor relations manager Giles Blackham.
Gold and copper concentrate generated $316 million of Acacia’s revenue of $1.05 billion in 2016. The ban immediately caused prices of Acacia’s shares on the London Stock Exchange to drop.
The company is Tanzania’s largest gold miner and has a secondary listing on Dar es Salaam Stock Exchange.
The ban may delay Acacia’s ongoing discussions on a merger with Endeavour Mining Corporation of Canada.
READ: Acacia talks of possible merger with Endeavour
ALSO READ: Tanzania unaware of Acacia, Endeavour mining merger
Strandline Resources Ltd, which is developing the Fungoni heavy mineral sands project near Dar es Salaam, however, said mineral sands were not included in the ban.
“While there may be some speculation, our enquiries to the Ministry indicate that the ban does not extend to mineral sands,” said Strandline’s managing director Luke Graham.
Tanzania mining firms oppose ban on mineral exports
Meanwhile in Kenya this project is to collapse
Acacia gold project in Kenya to kick off in 2022
PRINTRATING
Artisan miners in Kakamega County in Kenya dig for gold. PHOTO | FILE
By KENNEDY SENELWA
Posted Thursday, March 9 2017 at 21:16
IN SUMMARY
Gold mining firm Acacia expects to start commercial production of gold in western Kenya in 2022.
The company has made a discovery of 1.3 million ounces/36 tonnes of gold in the Liranda corridor near Kakamega town.
“The discovery of 1.3 million ounces of gold is an encouraging start,” said Acacia’s chief executive Brad Gordon. “For the project to be economically viable, we need deposits of at least two to three million ounces.”
Acacia Mining Plc will invest $12 million this year in exploration activities in western Kenya to exploit at least two to three million ounces of the precious metal.
Mr Gordon said that the company will spend $10 million on exploration activities in the 30-kilometre square Liranda corridor, and a further $2 million in the surrounding area as the firm’s special licence 213 covers about 1,600 square kilometres.
Mining Cabinet Secretary Dan Kazungu said that the potential of Acacia’s western Kenya project is exciting.
“It could ultimately lead to the creation of a gold mining industry that would benefit our economy and people,” he said.
In August 2016, Acacia, which has operations in Tanzania, Burkina Faso and Mali, bought a 49 per cent stake from a subsidiary of Lonmin plc for $5 million.
Acacia is exploring Kakamega, Vihiga, Siaya and Kisumu counties.
Meanwhile, Goldplat Plc has commissioned a new processing plant to expand gold production in the Kilimapesa mine near Kilgoris town in western Kenya at a cost of $2 million.
“Although it is modest in terms of production, it will help start sustainable profitability at Kilimapesa,” said chief executive Gerard Kisbey-Green.
The expansion is aimed at reducing the cost of operations and returning Kilimapesa mine to profitability. The company made a net loss of $892,731.31 in the year ended June 30, 2016.
http://www.theeastafrican.co.ke/bus...ct-Kenya-2022-/2560-3843928-qgvy8b/index.html
While in Tanzania other more gold mines
Shanta Gold raises production forecast as it extends life of Tanzania mine under revised plan
08:34 23 Mar 2017
Shanta said it remains on track to achieve its full year production guidance as it unveiled its revised mine plan
Shanta's revised mine plan will boost gold production
Shanta Gold Limited (LON:SHG) has raised its expectations for gold production growth as it announced a revised mine plan that will extend the life of the New Luika gold mine in Tanzania.
Shares rose 3.4% to 9.66p in morning trading.
Under the revised mine plan for January to December 2023, Shanta raised its forecast for its gold production across the period by 39% to 359,000 ounces (oz) to 500,000 oz.
The New Luika plant will be extended by four years to maximise its value and mine life.
The plan includes additional open pit reserves at Elizabeth Hill and further underground reserves at Ilunga.
It also provides for processing from underground and surface mining of 4.0mln tonnes of ore at an average grade of 4.2 grams/ tonne for the production of 500,000 oz from January 2017 to 2023.
“The plan provides for a longer mine life, increased production and most importantly, greater returns for all Shanta stakeholders,” said chairman Toby Bradbury.
"Considerable depth has been added to an already robust business case due to our delivery over the past 18 months and we will look to extend the planning horizon for the New Luika operation again in future.”
Shanta said it remains on track to achieve its full year production guidance for 2017 of 80,000 to 85,000 oz at all-in sustaining costs of US$800 - US$850 /oz.
The group also announced Eric Zurrin will return as its chief financial officer. “Eric is very familiar with Shanta having worked with the company in 2013 and most recently as interim CFO leading the financial restructuring that was completed in May 2016,” Shanta said.
Renae Dyer
Shanta Gold raises production forecast as it extends life of Tanzania mine under revised plan
© Proactive Investors 2017
Proactive Investor UK Limited, trading as “Proactiveinvestors United Kingdom”, is Authorised and regulated by the Financial Conduct Authority.
Registered in England with Company Registration number 05639690. Group VAT registration number 872070825 FCA Registration number 559082. You can contact us here.
BUSINESS
Tanzania mining firms oppose ban on mineral exports
A mine in Tanzania. The government wants all minerals processed locally. FILE PHOTO | AFP
By KENNEDY SENELWA
Posted Wednesday, March 22 2017 at 16:56
IN SUMMARY
- Energy and Minerals Permanent Secretary Justin Ntalikwa said the ban was in line with the value addition emphasised in Tanzania’s Mineral Policy of 2009 and the Mining Act of 2010.
- Analysts at Investec warned that the ban could scare away investors.
Mining companies are facing vast capital outlays and potential losses as a result of a ban on exports of unprocessed minerals by Tanzania.
Energy and Minerals Permanent Secretary Justin Ntalikwa said the ban was in line with the value addition emphasised in Tanzania’s Mineral Policy of 2009 and the Mining Act of 2010.
In addition, Prof Ntalikwa said the ban is meant to generate revenue, create jobs and promote technology transfer.
“The government will provide any necessary support to stakeholders involved in mineral beneficiation in the country, particularly smelting and refining of minerals,” he said.
A mining executive, however, said some minerals like iron ore are exported to Asia and Japan because their reserves cannot support investment in a smelting plant in Tanzania.
“A study done in 2011 showed a smelting plant in Tanzania will cost $500 million. Raising the money will be difficult as smelting cannot be profitable in the country,” the executive said, adding that a steady supply of power from the national grid is also a challenge.
The Ministry of Energy and Minerals on March 2 banned the export of concentrates with ores of metallic minerals such as gold, copper, nickel and silver in order to promote value addition in the country.
But analysts at Investec warned that the ban could scare away investors.
Tanzania Chamber of Mines and Energy (TCME) director general Gerald Mturi said the organisation will share with government and stakeholders the results of an ongoing assessment of the ban on exporting metallic ores.
TCME is expected to engage the government and industry stakeholders to address concerns as extractives firms favour a phased approach to a ban on the export of concentrates with metallic ores while developing local smelting capacity.
Tanzania’s move comes after Uganda in August last year lifted its ban on exporting of minerals ores, including copper, tungsten, coltan, phosphates and iron. The Uganda Chamber of Mines and Petroleum (UCMP) had, been lobbying for lifting of the ban, saying it had caused job losses.
Tanzania in November last year, banned imports of gypsum used for making cement and coal to boost the use of domestic resources in the sector.
Acacia Mining Plc, which owns the North Mara, Bulyanhulu and Buzwagi mines in northwest Tanzania, has stopped export of metallic mineral concentrates due to a directive by President John Magufuli.
“In 2016, gold or copper concentrate amounted to approximately 30 per cent of group revenues. Acacia has ceased exports of concentrate and is seeking clarification,’’ said Acacia’s investor relations manager Giles Blackham.
Gold and copper concentrate generated $316 million of Acacia’s revenue of $1.05 billion in 2016. The ban immediately caused prices of Acacia’s shares on the London Stock Exchange to drop.
The company is Tanzania’s largest gold miner and has a secondary listing on Dar es Salaam Stock Exchange.
The ban may delay Acacia’s ongoing discussions on a merger with Endeavour Mining Corporation of Canada.
READ: Acacia talks of possible merger with Endeavour
ALSO READ: Tanzania unaware of Acacia, Endeavour mining merger
Strandline Resources Ltd, which is developing the Fungoni heavy mineral sands project near Dar es Salaam, however, said mineral sands were not included in the ban.
“While there may be some speculation, our enquiries to the Ministry indicate that the ban does not extend to mineral sands,” said Strandline’s managing director Luke Graham.
Tanzania mining firms oppose ban on mineral exports
Meanwhile in Kenya this project is to collapse
Acacia gold project in Kenya to kick off in 2022
Artisan miners in Kakamega County in Kenya dig for gold. PHOTO | FILE
By KENNEDY SENELWA
Posted Thursday, March 9 2017 at 21:16
IN SUMMARY
- The company has made a discovery of 1.3 million ounces/36 tonnes of gold in the Liranda corridor near Kakamega town.
Gold mining firm Acacia expects to start commercial production of gold in western Kenya in 2022.
The company has made a discovery of 1.3 million ounces/36 tonnes of gold in the Liranda corridor near Kakamega town.
“The discovery of 1.3 million ounces of gold is an encouraging start,” said Acacia’s chief executive Brad Gordon. “For the project to be economically viable, we need deposits of at least two to three million ounces.”
Acacia Mining Plc will invest $12 million this year in exploration activities in western Kenya to exploit at least two to three million ounces of the precious metal.
Mr Gordon said that the company will spend $10 million on exploration activities in the 30-kilometre square Liranda corridor, and a further $2 million in the surrounding area as the firm’s special licence 213 covers about 1,600 square kilometres.
Mining Cabinet Secretary Dan Kazungu said that the potential of Acacia’s western Kenya project is exciting.
“It could ultimately lead to the creation of a gold mining industry that would benefit our economy and people,” he said.
In August 2016, Acacia, which has operations in Tanzania, Burkina Faso and Mali, bought a 49 per cent stake from a subsidiary of Lonmin plc for $5 million.
Acacia is exploring Kakamega, Vihiga, Siaya and Kisumu counties.
Meanwhile, Goldplat Plc has commissioned a new processing plant to expand gold production in the Kilimapesa mine near Kilgoris town in western Kenya at a cost of $2 million.
“Although it is modest in terms of production, it will help start sustainable profitability at Kilimapesa,” said chief executive Gerard Kisbey-Green.
The expansion is aimed at reducing the cost of operations and returning Kilimapesa mine to profitability. The company made a net loss of $892,731.31 in the year ended June 30, 2016.
http://www.theeastafrican.co.ke/bus...ct-Kenya-2022-/2560-3843928-qgvy8b/index.html
While in Tanzania other more gold mines
Shanta Gold raises production forecast as it extends life of Tanzania mine under revised plan
08:34 23 Mar 2017
Shanta said it remains on track to achieve its full year production guidance as it unveiled its revised mine plan
Shanta's revised mine plan will boost gold production
Shanta Gold Limited (LON:SHG) has raised its expectations for gold production growth as it announced a revised mine plan that will extend the life of the New Luika gold mine in Tanzania.
Shares rose 3.4% to 9.66p in morning trading.
Under the revised mine plan for January to December 2023, Shanta raised its forecast for its gold production across the period by 39% to 359,000 ounces (oz) to 500,000 oz.
The New Luika plant will be extended by four years to maximise its value and mine life.
The plan includes additional open pit reserves at Elizabeth Hill and further underground reserves at Ilunga.
It also provides for processing from underground and surface mining of 4.0mln tonnes of ore at an average grade of 4.2 grams/ tonne for the production of 500,000 oz from January 2017 to 2023.
“The plan provides for a longer mine life, increased production and most importantly, greater returns for all Shanta stakeholders,” said chairman Toby Bradbury.
"Considerable depth has been added to an already robust business case due to our delivery over the past 18 months and we will look to extend the planning horizon for the New Luika operation again in future.”
Shanta said it remains on track to achieve its full year production guidance for 2017 of 80,000 to 85,000 oz at all-in sustaining costs of US$800 - US$850 /oz.
The group also announced Eric Zurrin will return as its chief financial officer. “Eric is very familiar with Shanta having worked with the company in 2013 and most recently as interim CFO leading the financial restructuring that was completed in May 2016,” Shanta said.
Renae Dyer
Shanta Gold raises production forecast as it extends life of Tanzania mine under revised plan
© Proactive Investors 2017
Proactive Investor UK Limited, trading as “Proactiveinvestors United Kingdom”, is Authorised and regulated by the Financial Conduct Authority.
Registered in England with Company Registration number 05639690. Group VAT registration number 872070825 FCA Registration number 559082. You can contact us here.
