Tanzania: Govt to Revive Stamico to Boost Mining Sector

Posted on :Monday , 11th July 2016

As part of strategies to enhance the contribution of the mining sector in the economy, the government plans to perk-up the State Mining Corporation (Stamico) to enable it venture into strategic mining projects.

The mining sector contribution to the Gross Domestic Product (GDP) is just 3.5 per cent much as it provides other benefits to the economy, such as employment and business to local suppliers in areas surrounding the mines.

Deputy Permanent Secretary in the Ministry of Energy and Minerals, Prof James Mdoe, explained yesterday that the government was determined to engage the state mining company in strategic projects to increase the contribution of the sector in the economy.

"Stamico was very powerful in the 1970s and we now want to restore the lost glory by engaging it in huge projects," the Deputy PS said during a tour at the ministry's pavilion at the 40th Dar es Salaam International Trade Fair (DITF).

Among flagship projects under Stamico is Kiwira Coal Mine in Mbeya Region which the company plans to revamp by starting to generate power using coal. Other projects under the state mining firm include Biharamulo Gold Mine in Kagera Region which is owned by Stamico's subsidiary StamiGold. The company also has stake in TanzaniteOne in Manyara Region.

The company as well envisages establishing a tin mine at Kyerwa in Kagera Region. In another development, Prof Mdoe said the country was set to open new mines for iodine in Songwe as well as graphite in Mahenge and Ruangwa.

"Graphite is of high value at present as it is used in manufacturing of batteries to run motor vehicles as opposed to petroleum products," he explained. Prof Mdoe explained as well that plans were underway to expand offices of the Tanzania Mineral Audit Agency (TMAA) to enable the country capture all revenues from the mining industry.

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