Tanzanian Royalty And The "New Frontier" of Mining...

[jmushi1]

Tanzanian Royalty’s Jim Sinclair has an extensive and favorable history within Tanzania. He has often noted the importance of responsible negotiation and partnership between mining companies and the host nation of mineral resources. Tanzanian Royalty and STAMICO appear poised to create a model for the future that will pave the way for a “New Frontier of Mining” where corporate and state owned entities co-exist and enter joint ventures for the benefits of both the nation itself and the shareholders of the corporate entity.

Tanzanian Royalty And The 'New Frontier' Of Mining - Seeking Alpha

 

[jmushi1]

Ubepari bana, yani utajiri ni wetu lakini wanao uown ni watu ambao hata hawajui nchi yetu wala nini...

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If financing was available at the sovereign level, STAMICO would have no need to partner with TRX. TRX lacks a history with the property and lacks experience in actually developing a gold mine. TRX also lacks a history of accessing development funds or loans. If STAMICO were not expecting TRX to come to the table with significant amounts of cash they simply would have retained a 100% interest in the project and hired an operator. Further, STAMICO and the Tanzanian government have been unwilling and/or unable to commit capital or provide financing for other projects, so they are an unlikely source of capital. It will be interesting to see what TRX responsibilities are pursuant to the agreement if and when it is made public.

Let's bring Kigosi out of the shadows into the light. TRX is offering to give away 15% its largest project, based on capitalized exploration costs of $14 million. To me that is very odd. It tells me that the project is in trouble. If the mining permits were forthcoming, why make such a desperate offer? It is not as if STAMICO is going to pay for the 15% interest or reduce the required capital commitment for Buckreef. Please leave aside the Jim Sinclair is a philanthropist looking to aid Tanzania rationale. This is a corporate asset and management has a fiduciary duty to shareholders. The only reason to make the offer is to induce the government to grant the permit. If the permit is denied that would probably trigger a $14 million write-off and eliminate one of the few potential, albeit it improbable, sources for internally generated cash.

 

[jmushi1]

Hii ina maana kuwa wanaweza wakafikia pahala wao wakawa na madini kwenye storage zao kuiliko yale tuliyonayo ardhini...Ndo maana wana kiburi cha kusitisha manunuzi ili kuwa komoa, ndo walichomfania mwalimu, halafu watu hawaoni...

STAMICO became the parent company of TGI and Mwadui Diamond Mine. From 1970 to themid-1980s, the mineral export performance was most unsatisfactory, as there was a drastic fall ingold exports and a gradual decline in diamond exports. Gold exports, for example, dropped from​

500 kg in 1969 to 20 kg in 1971.

http://www.tanzaniagateway.org/docs...erals_Boom_Issues_In_Mining_and_Marketing.pdf

 

[jmushi1]

Halafu kuna "Nairobi Factor"

Nairobi has been the main regional market for gems and gold since Tanzania attempted tonationalise mining in the 1960s. Its markets grew rapidly as mining activity increased in allcountries in the region in the 1980s and 1990s. Foreign buyers like it because air access iseasy, dealers stock all types of products in good quantities, comfortable accommodations areavailable at reasonable prices, and their business can be done in relative security. Localsellers cited similar factors for taking their products there. Prices are sometimes, but notalways better. Even when they are not better, there is the advantage that dealers will buyquickly all types and qualities of goods, so a broker can be in and out in a single day.Northern Tanzanian mining areas are geographically closer to Nairobi than to Dar es Salaam,and the road networks are considerably better. Security had been better in Kenya than inTanzania during the mid-1990s, which was one reason interviewees gave in the 1996fieldwork for trading there. In the last two years the security situation in Kenya hasdeteriorated sharply, while Tanzania has remained stable.Nairobi alone was estimated by one of its dealers to have about 300 active dealers. Asignificant number of them are well organised, well capitalised and have family ties in thebusiness that span generations and continents. Many are from the goldsmith caste in India,whose families have invested in commerce and industry in East Africa over severalgenerations. This gives them an advantage in market knowledge and contacts, something thatmany Tanzanian dealers lack. Some 54 major gem dealers are listed in the Nairobi telephonedirectow, together with eight minerals dealers. Many have multiple lines, reflecting the factthat international gem dealing requires intensive telecommunications. The Kenyan mineraldealers association had some 85 members before it became inactive a few years back. Someof the major dealers interviewed in this study were not listed in the telephone directory, nordid they participate in the dealers' association, which rends more credible the verbal estimate​

of 300 active dealers.

 

[jmushi1]

(i)​

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Motives for smuggliing​

Price and market environmental convenience are the key factors sellers take into account in choosing where to sell.

Tanzanian sellers find that in Kenya they have a better chance of making rapid sales in good conditions, provided by adequately capitalised dealers.

As Nairobi has a bigger market, with many dealers who have been in business for decades, it providessellers with certain advantages. They can sell their goods and obtain cash more quickly.

They can sell medium-quality stones as well as top quality ones, whereas in Arusha dealers buy a much smaller volume of stones and only top quality.

Gold sellers find their accommodations paid for by the buyer in Nairobi, while in Arusha they must pay their owncosts.

The Nairobi market also has more diverse and cheaper consumer goods, so traders canbuy consumer goods with the proceeds from minerals sales and​

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turn a cyclical profit on both.This, incidentally, increases the loss to the Tanzanian GDP.

Nairobi is also closer to the northern mining areas than Dar es Salaam, and more accessibleby road for minerslminerals brokers outside of Arusha.

Other reasons for smuggling include fencing other stolen goods, financing imports, and evading taxes on exports and imports.Security during travel ancl selling is also an issue of concern to sellers. According to themining community's views, security protection is not satisfactory.

Miners and brokers who attempted to legalise their operations frequently complained that they were subject to asmuch or more harassment by the authorities when operating legally as when not licensed. Inestablished mining areas, the community develops informal mechanisms for ensuringsecurity.

In mine rush areas, problems include theft, armed robbery and officials taking partor all of one's goods.

The main reasons cited by mining sector operators for the existence of smuggling are:

searching for better mineral markets and prices, avoiding official bureaucracy, advantage of the presence of many foreign brokers in the mining areas, using the informal credit available to minerals operators, and low marketing costs.
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[Imany John]

stamico= STATE MINING CO-OPARATION

 

[Ndahani]

A friend in deed! Ndo maana tunampiga vita sana Nyerere maana ingekuwa ngumu kwa magumashi ya aina hii kutekelezeka. Ukifuatilia vizuri utakuja kugundua kitu tofautipengine na kinachosemwa hapo. Ni kwamba jamaa wanaweza wakatumiwa kama Rites ya India ilivyotumika,lol!

 

[jmushi1]

BTW kama kuna mtu mwenye kutaka kuingia kwenye biashara ya madini basi hapa (http://www.tanzaniagateway.org/docs...sues_In_Mining_and_Marketing.pdf)umeshapatiwa pa kuanzia...However mambo ni yale yale tu, tumebakia kwenye siasa, vitendo finyu!

5.1.4​

Data and information on mining activities is still very weak.

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The collection, storage, analysis and dissemination of data and information on mining activities have not improved despite the ongoing institutional reforms and widespread development of information technology in Tanzania.

The present recording system of mineral purchases and exports does not allow easy data processing to monitor the export trends of individual coloured stones, gold, and diamond.

This information would enable the Mineral Resources Department (MRD) staff to advise dealers and miners. No serious data and information collection is done at the mining level. No one has exact data and information about the performance of the mining sector. The little that is done is mostly guess estimates based on case studies or ​

and estimated figures to satisfy administrative procedures and donors.

A few foreign buyers visiting the Ministry of Energy and Minerals are usually directed to dealers. In the early mine rush years no foreign market information, service or any training in gemmology has been conducted or organized by the MRD.

The country lacks specialized institutions to offer professional services on how to start value-added activities or the choice of appropriate lapidary and jewellery equipments. Very few on the MRD staff have gemmological knowledge, which limits the ability of the field staff to advise mineral operators.

It was noted during the survey that MRD has initiated specific projects to addresssome of the above issues.

More than 10 field technicians were sent to Germany, the UK, and Thailand to study gemmology.

The first basic gemmological training of small-scale miners was offered in Arusha in December 1999.

http://www.tanzaniagateway.org/docs...erals_Boom_Issues_In_Mining_and_Marketing.pdf
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[jmushi1]

[h=1]News[/h]

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[h=3]Tanzania May Abolish Tax Refund for Miners to Boost Revenue[/h]
Publication Date	25 October 2011
Publication	Bloomberg
URL	Tanzania May Abolish Tax Refund for Miners to Boost Revenue - Businessweek

Author David Malingha Doya (pmrichardson@bloomberg.net)

Tanzania, Africa's third-biggest gold producer, may abolish a tax refund for mining companies as a way to generate more revenue from the industry, a Mines Ministry official said. Tax policy in the East African nation provides for a refund on fuel used to generate electricity to power mines. The government plans to begin talks with companies about halting the practice, Ally Samaje, acting commissioner of minerals, said in an interview on Oct. 20. "It is not immediate, but it is something we will definitely start negotiating with the companies," Samaje said. Existing arrears "will be fully paid," he said. In April, the Tanzania Chamber of Minerals and Energy, or TCME, said companies are owed $274 million in tax refunds. AngloGold Ashanti Ltd., the world's third-largest producer of the metal, and African Barrick Gold Ltd. are among mining companies that operate in Tanzania, which ranks behind South Africa and Ghana, and alongside Mali, as the third- biggest producer in Africa. Gold exports from Tanzania climbed to $1.7 billion in the year through June from $1.5 billion, a year earlier, the central bank said in a report last month. African Barrick hasn't received any communication about the proposed scrapping of the tax, Teweli K. Teweli, the company's Dar es Salaam-based spokesman, said by phone yesterday. Enforce Agreement AngloGold, based in Johannesburg, said it will seek to enforce an agreement it has with the Tanzanian government should the refund be canceled. "Fuel refunds are provided for in the Mining Development Agreement," Garry Davies, managing director of AngloGold's Geita Gold Mining Ltd. unit in Tanzania, said in an Oct. 20 phone interview from the northern city of Arusha. "We intend to use the agreements to defend our business." Tanzania previously scrapped the tax refunds in 2009, before reinstating them last year. "Under the current legislation, for new investors, tax refunds have already been abolished except for companies with MDAs," Teweli said. "Those MDAs are still there." Mining companies are owed tax refunds dating back to 2002, according to the TCME, which represents private companies in the industry. AngloGold and Barrick said they have agreed with the government on a mechanism to settle the outstanding amounts, without providing details. Tanzania's mining industry consumes about 13.5 million liters (3.57 million gallons) of fuel per month, while gold- mining companies estimate gasoline accounts for 30 percent of their operating costs, the TCME said in April. Higher Royalties Before the tax refund is discussed, the Mines Ministry's priority is to get companies to begin paying higher royalties, Samaje said. Mines Minister William Ngeleja said last week mining companies agreed to pay a royalty rate of 4 percent, compared with 3 percent previously. AngloGold and African Barrick said no agreement had been reached and that negotiations on the levy were continuing. "The most urgent issue is the royalty rate, so that government gains from current gold prices also," Samaje said. "After this, we shall begin negotiating scrapping the fuel levy, and reviewing the MDAs every five years." Government reviews of agreements with mining companies increase risk and uncertainty and may make it difficult for them to access capital, Mark Parker, managing director of African Eagle Resources Plc, said in an interview on Oct. 20. African Eagle is in the process of negotiating an MDA for its Dutwa nickel project, and has yet to begin talks with banks that will provide half of the $600 million needed as seed-capital, Parker said. "We could trust government's word that the investment climate will be good, but banks need things to be agreed and written before they commit their money," Parker said. --Editors: Paul Richardson, Ana Monteiro. To contact the reporter on this story: David Malingha Doya in Dar es Salaam via Nairobi at pmrichardson@bloomberg.net. To contact the editor responsible for this story: Paul Richardson at pmrichardson@bloomberg.net.

Mambo mengi tu hatuna habari...

 

[Smatta]

Aise hii mambo ya dhahabu ni complex sana, lakini Tanzania inajulikana kuwa mahali rahisi ya kufanya illegal dealings and smuggling. nina uhakika mnajua watu wanaodeal na mines, hebu waulize watawaambia. mimi nina first hand experience.

 

[jmushi1]

Aise hii mambo ya dhahabu ni complex sana, lakini Tanzania inajulikana kuwa mahali rahisi ya kufanya illegal dealings and smuggling. nina uhakika mnajua watu wanaodeal na mines, hebu waulize watawaambia. mimi nina first hand experience.

Ha ha ha! Smatta we jasusi wa Kenya?

Sikujuwa huwa unatembelea huku kwenye siasa.

Cha muhimu ni serikali yetu kuliangalia hili kwa makini kwasabbau nyie hamuna madini lakini ndiyo mnaongoza kuya export na kupata faida kubwa zaidi, sasa shida yetu tunanyonywa na kila mtu!

 

[jmushi1]

Tupige brush kidogo...Muhongo anayaendeleza haya ama anashughulikia hizi issue?