In a bid to increase the mineral sector’s contribution to the national economy, the State Mining Corporation (Stamico) has signed an investment deal with a South African mining company worth USD20m (over 20b/-).<

Stamico deputy chairman Ramadhani Hatibu said the project aimed at ensuring the mining sector contributed immensely to the improvement of household incomes in the country.

Elgin, a private South African black empowerment company, would, according to the deal, build a mining factory in Dodoma which would cater for all mineral sector’s needs in the country.
He said as one of the strategies to increase the mineral sector’s contribution to the national wealth, the government should consider investing in Stamico for it to harness the sector’s performance.

Already, Stamico had secured equipment which could help in mineral drilling in the country. The CS-14 drilling rigs worth USD 800,000 had the capacity to drill rocks up to 2 km deep in the ground.

Once the factory was completed, artisanal miners and other mineral dealers would benefit by improving their mineral output.

For years now Tanzania has been exporting raw minerals which fetched little revenue.
Completion of the factory would provide spare parts to all mines as well as education to small and middle scale miners.
Elgin has been in the construction of mining sites as well as providing spare parts to many mining companies in South Africa, Namibia and Botswana.

SOURCE: THE GUARDIAN