The latest Bank of Tanzania (BOT) Monthly Economic Review of October 2019 indicates that in the year ending September 2019, gold exports rose by +26.1% to USD 1.9 billion on account of volume and price effects.

During the same period, the overall value of goods and services exports rose by 5.2% to USD 9,205.2 million due to an increase in services receipts and value of non-traditional goods exports.

The value of non-traditional goods exports was USD 3,991.9 million, higher than USD 3,222.1 million in the corresponding period in 2018.

Earnings from all major categories of non-traditional goods exports increased, except for fish and fish products, and re-exports. Export of gold accounted for 48.6% of non-traditional goods exports

The export value of foreign exchange earnings from services accounted for 45.6% of total exports. It amounted to USD 4,194.3 million in the year ending September 2019 compared with USD 3,930.8 million in the corresponding period in 2018, largely driven by tourism.

Receipts from tourism accounted for 61.8% of service receipts and grew by 9.9% to USD 2,593.3 million, owing to an increase in tourist arrivals.

Australian gold mining company Amani Gold Limited (ASX: ANL) has recently secured a Gold Dealer Licence in Tanzania via a 60% equity interest in Amago Trading Limited (Amago).

Amago is a joint venture between Amani and a consortium of local mining industry professionals headed by Mr. Bamwesiga Mwijage.

The Gold Dealer Licence permits Amago to buy, sell, or deal in gold. The company’s aim is to source gold in the gold-rich Geita district in northwest Tanzania where Tanzania has launched its first-ever international minerals trading hub to accommodate buyers, miners, government offices, banks and dealers at a one-stop center.

The gold secured by Amago in Geita will be shipped to Hong Kong for refining and sales, Amani explains.

Amani focuses on the exploration, development, and production of precious metals and minerals and currently manages gold mines in the Haut-Uele province in northeastern Democratic Republic of Congo.

Tanzania Gold
Tanzania is the 4th largest producer of gold in Africa in Africa after South Africa, Ghana and Mali.

The Geita District produces 40% of all gold produced in Tanzania.

Artisanal and local miners produce approximately 20 tonnes of gold per year and up to 90% of this is on-sold illegally.

The mineral trading hubs will allow miners to access formal and government-regulated markets.

East Africa-focused gold producer Shanta Gold (AIM: SHG), recently published an update for its New Luika Gold Mine in South Western Tanzania, indicating a considerable increase in estimated reserves and resources.

New resources and reserves estimated following drilling program for the 6 months from 1 April 2019 to 30 September 2019, added new probable gold reserves totaling 135,438 ounces grading 4.07g/t Au at these Newly Drilled Targets.

This results in indicated resources of 219,408 ounces grading 3.19 g/t (inclusive of the abovementioned reserves and the 83,543 ounces already announced on 15 July 2019) up 219% from 57,916 ounces grading 1.77 g/t at end-December 2017.

In addition, new inferred resources of 94,007 ounces grading 2.75 g/t up 26% from 74,427 ounces grading 1.71 g/t have been estimated at the Newly Drilled Targets, with further drilling planned to prove this up.

Eric Zurrin, Chief Executive Officer, commented: “The Company is pleased to announce a significant increase in reserves and resources at the Newly Drilled Targets that was completed in September. We have high expectations that the targets will continue to grow both in size and number as we look to add to our mine life at New Luika.”

Since 30 September 2019, drilling has been ongoing on the Mining Licences and across other regional targets in the Lupa Goldfield and approximately 4,000 meters of exploration drilling is planned for Q4 2019.

The nex exploration update is expected before year-end 2019 with a consolidated reserves and resources statement expected in Q1 2020.

Tanzania Gold
Tanzania gold reserves are estimated at about 45m ounces (oz). Gold exploration has been centered mostly on the greenstone belts around Lake Victoria, where several large deposits have already been discovered and are being developed.

Gold production in Tanzania stands at around 50t per year which makes it the 4th largest gold producer in Africa after South Africa, Ghana and Mali.

The latest Bank of Tanzania (BOT) Monthly Economic Review of December 2019 indicates that in the year ending November 2019, gold exports rose by +41.9% to USD 2.1 billion on account of volume and price effects.

During the same period, the overall value of goods and services exports rose by 11.9% to USD 9,534.4 million on account of an increase in the value of non-traditional goods exports and service receipts.

The value of exports of non-traditional goods grew by 31.0% to USD 4.1 billion, largely driven by gold, which accounted for 51.4% of non-traditional goods exports, and manufactured goods.

Manufactured goods exports improved by 28.4% to USD 996 million, largely owing to good performance in exports of iron and steel products, glass and glassware, manufactured tobacco, sisal yarn and twine, and fertilizers.

Service receipts improved to USD 4.1 billion from USD 3.9 billion in the year ending November 2018, largely owing to an increase in earnings from transport and travel services.

Travel receipts, which accounted for 43.5% of goods and services exports, rose by 2.9% to USD 2.5 billion following an increase in the number of tourist arrivals.

Traditional goods exports continued to decline, contracting by 21.4% to USD 740 million in the year ending November 2019 from the value recorded in the corresponding period of 2018.

The value of all traditional goods exports declined save for coffee, cotton, and sisal. Improved performance of coffee, cotton and sisal exports was mainly due to an increase in the volume exported following favorable weather during the crop season.

Contrary, the value of cashew nuts exports fell following a deterioration in world market price. The value of cloves exports also lessened owing to lower volume due to the cyclical nature of the crop coupled with a decline in world market price.

On 10th January 2020, Winshear Gold Corporation (TSX-V: WINS) notified the Attorney General of Tanzania that there exists an investment dispute between the company and the Government, relating to the SMP Gold Project located in south-west Tanzania.

The SMP project comprises a number of Prospecting and Retention Licenses. The company explains that the project could not be developed to mine status by reason of technical constraints, or other economic factors, which are temporary in nature.

Winshear commenced exploration activities at SMP in 2006. Subsequently, through its Tanzanian subsidiary, it applied for and was granted 4 Retention Licences which gives the licensee tenure over the land before progressing to a Mining Licence, and that covered the mineral resource areas. These licenses were valid for 5 years and could be extended for another 5 years before applying for a Mining Licence. 

In January 2018, Tanzania published the Mining Regulations 2018, canceling all Retention Licences issued earlier. The rights over all areas under these licenses, including those under the SMP project, were immediately transferred to the Government of Tanzania. 

The company explains that the abolition of the SMP Retention Licences and the removal of the rights to the land have rendered the project valueless. Thus, as a direct consequence of the legislative, regulatory and other measures by Tanzania, the company has lost completely its investment.

In December 2019, the Mining Commission of Tanzania announced a public invitation to tender for the joint development of areas previously covered by Retention Licences, including those connected to the SMP project. 

As a result, Winshear is now taking all necessary actions to preserve its rights and protect its investments in Tanzania. The company expresses its desire to reach a mutually acceptable outcome with the Government of Tanzania. However, if such an outcome is not achieved within the next six months, the company will have no alternative but to pursue its claims before an international tribunal and seek full compensation for damages suffered as a result of Tanzania’s acts and omissions. 

A few days later, on 15th January 2020, Indiana Resources (ASX: IDA) served to Tanzanian President, Attorney General and Ministry of Energy and Minerals, a similar notice in relation to the Retention Licence connected to the Ntaka Hill Nickel Project in north-eastern Tanzania. 

Finally, on 17th January 2020, Montero Mining and Exploration (TSX-V: MON ) delivered a similar notice to the Attorney General of Tanzania, relating to Montero’s investment in the Wigu Hill, a rare earth element project located 170 km south-west of Dar es Salaam.

The reaction of the Tanzanian Government is awaited. The website of the Tanzanian Ministry of Minerals is currently under maintenance and not accessible. 

On 24th January 2020, Barrick Gold Corporation (NYSE: GOLD) (TSX: ABX) and the Government of Tanzania (GoT) signed the agreements to ratify the creation of Twiga Minerals Corporation, the management company jointly owned by the GoT and Barrick, that will oversee the management of Barrick’s mining operations in the country.

The new company is owned for 84% by Barrick and 16% by the GoT, and is based on 50/50 sharing of the economic benefits generated by the mining operations after the recoupment of capital investments.

In addition, Barrick will partner with the University of Dar es Salaam and commit up to USD 10 million in funding over a 10-year period for training and skills development in the mining industry, and will also commit up to USD 40 million to upgrade the road between the Bulyanhulu gold mine and Mwanza as well as constructing a housing compound and related infrastructure.

Twiga Minerals will also work on a local supplier strategy as well as a community development plan to create sustainable economic opportunities for the people around its mines.

The new company is the result of a dispute between Acacia Mining, a former subsidiary of Barrick and Tanzania’s largest gold producer, and the GoT since May 2017 when a presidential committee accused the company to have under-declared its mineral exports and eventually presented it with a demand for USD 190 billion in unpaid taxes.

During the signing ceremony, President Magufui congratulated Barrick Gold Corporation’s negotiating team by reaching this point, he has assured them that Tanzania will continue to be a great place for investment.

He also ordered the auctioning of the 200 gold sand containers pertaining to Acacia Mining that were seized at the port of Dar es Salaam in 2017, for sale through Twiga Minerals Corporation.

Meanwhile, three mining company has recently served the GoT with dispute notices relating to some of their mining projects in Tanzania.

Petra Diamonds (LSE: PDL), the mining company that partially owns – together with the Government of Tanzania (GOT) – and operates the Williamson diamond mine in Tanzania, has published its Trading Update for the 6 Months ended 31 December 2019, showing that the ROM production at the mine increased 3% to 214,888 carats.

This is higher than the previous forecasts of H1 FY 2019 of 208,064 carats, demonstrating the continued steady operational delivery of the mine.

Williamson is Tanzania’s only important diamond producer. The mine is an open-pit operation based upon the 146-hectare Mwadui kimberlite pipe, which is the world’s largest economic kimberlite to have seen continuous mining.

The ownership of the mine is split between Petra Diamonds (75%) and the GOT (25%), and its potential is +50 years.

In FY 2019, the Williamson mine produced a total of 386,016 carats versus 328,681 carats in FY 2018 (+17%). And in 2019, Petra Diamonds sold a total of 402,329 carts from the mine, versus 253,524 carats in FY 2018 (+59%), for a total of USD 93 Million versus USD 68.5 Million.

However, the average price per carat has fallen by -14% to USD 231 versus USD 270 in 2018. But Richard Duffy, Chief Executive of Petra Diamonds, commented that rough diamond pricing has modestly improved moving into Q3 2019.

Meanwhile, the company remains in discussions with the GOT and local advisers in relation to various issues, including the overdue VAT receivables and the blocked parcel.

Tanzania Diamonds
In 2015, Tanzania was the 10th largest diamond producer in Africa after Botswana (17.3m ca), Angola (7.1m ca), South Africa (6m ca), the Democratic Republic of Congo (3.15m ca), Namibia (1.92m ca), Sierra Leone (0.5m ca), Zimbabwe (0.5m ca), Lesotho (0.35m ca) and Ghana (0.24m ca).

Diamonds in Tanzania are found mainly in the Williamson diamond mine, which is located south of the town Mwanza in northwest Tanzania.

The latest Bank of Tanzania (BOT) Monthly Economic Review of January 2020 indicates that in the year ending December 2019, travel proceeds, mostly from tourism-related activities, grew by 3.2%, to USD 2,526.2 million in 2019.

The growth was much associated with an increase in the number of tourists arrivals.

Tourism revenues accounted for 61% of all service receipts, which increased to USD 4,139.5 million in 2019 from USD 4,014.7 million in 2018.

During the same period, the overall value of Tanzanian exports increased to USD 9,712.6 million from USD 8,394.3 million in 2018. As in recent months, the improvement was largely due to an increase in service receipts and the value of non-traditional goods exports.

The value of all non-traditional goods exports increased, except re-exports. Gold exports, which accounted for 52.3% of non-traditional goods exports, increased by 45.5% to USD 2,217.1 million, driven by both volume price in the world market.

Manufactured goods exports grew by 24% to USD 984.9 million, driven by sisal yarn and twine, iron and steel products, glass and glassware, manufactured tobacco and fertilizers.

The value of traditional exports rose to USD 829.9 million in 2019 from USD 772.1 million a year earlier, driven by cashew nuts, cotton, and coffee.

The increase in the value of cashew nuts exported was on account of higher volume that outweighs the impact of price decline in the world market.

Likewise, improvement in coffee and cotton exports was due to the increase in volume following good weather during the crop season.

Conversely, the value of cloves exports decreased due to a price decline in the world market, while for tobacco it was on account of low export volume and price.

Tanzanian Prime Minister Kassim Majaliwa has reiterated the Government’s plans to bring the mining sector to account for 10% of the country’s GDP by 2020, versus 3.5% currently.

The comments were made at the 2020 Tanzania Minerals and Mining Investment Conference recently held in Dar es Salaam.

Majaliwa explained that the objective will be achieved thanks to the recent reforms in the mining sector and the acquisition by Tanzania of the certificate of origin for tin and its base metals of tantalum and wolframite.

Thanks to the certificate, these metals that are mined in Kyerwa and Ngara districts in the Kagera region in northwestern Tanzania can now be exported.

Majaliwa also said that minerals’ contribution to the economy grew by 13.7% in 2019.

Tanzania Mining

Mining in Tanzania includes metals (gold, iron ore, nickel, copper, cobalt, silver), industrial minerals (diamond, tanzanite, ruby, garnet, limestone, soda ash, gypsum, salt, phosphate, gravel, sand, dimension stones and lately graphite), and fuel minerals (coal, uranium).

Mining and quarrying activities in Tanzania contributed 3.7% to its GDP with USD 1.78bn in 2014, compared to only USD 598m in 2009, representing a value increase of almost 200%.

Based on Tanzania’s Development Vision 2025 plan, the mining sector is expected to account for 10% of the GDP by that year.

Tanzania Gold Corporation (TSX: TNX) (NYSE American: TRX) received an update of the Estimated Mineral Resources in the Buckreef gold mine project, which doubles the amounts of the previous estimates.

At a cut-off of 0.5g/t, the updated Mineral Resource for the Buckreef Sheer Zone (Measured + Indicated) comes up to 40.90 million tonnes grading @ 1.73g/t that contain 2,270,700 ounces.

At the same cut-off grade, the last published Measured + Indicated Resource for the Buckreef Sheer Zone (at a cut-off grade of 0.50 g/t Au) amounted to 21.99 million tonnes grading @ 1.54 g/t Au that contained 1,085,465 ounces of gold.

This is more than doubles the estimated Mineral Resource in the Measured + Indicated categories for the Buckreef Shear Zone.

The Buckreef gold project is located in north-central Tanzania immediately to the south of Lake Victoria and 110km southwest of Mwanza. 

The Tanzanian State Mining Company (Stamico) acquired it in December 2010. Tanzania Gold Corporation has the right to earn a 55% interest in Buckreef with Stamico holding the remainder.

Formerly Tanzanian Royalty Exploration Corporation, Tanzanian Gold Corporation is a mining company with interest is in the exploration and development of gold properties, focusing primarily on Tanzania.

Barrick Gold Corporation (NYSE:GOLD) (TSX:ABX) has recently paid the first tranche of the USD 300 million settlement it agreed with the Tanzanian government to resolve the disputes it inherited from Acacia Mining.

Barrick Gold president and chief executive Mark Bristow said this demonstrated the strength of the partnership with the government.

Earlier this year they formed Twiga Minerals Corporation, jointly owned and which oversees the management of Barrick’s operations in the country.

In terms of its framework agreement with the government, the shipping of some 1,600 containers of concentrate stockpiled from Bulyanhulu and Buzwagi mines resumed in April and the first USD 100 million received from the sale has gone to the government.

This initial payment will be followed by five annual payments of USD 40 million each.

At the same time, some 90% of the outstanding land claims at North Mara have been settled with payment scheduled to start this month.

Tanzanian Gold Corporation (TSX: TNX) (NYSE American: TRX) recently announced that gold production has reached commercial level at the oxide ore processing plant at the Buckreef Project.

The first bucket at the oxide open pit was on April 6, 2020. Since then oxide ore has been stockpiled at a ROM pad. Construction of the plant ended on May 28, 2020. The plant successfully completed both cold and hot commissioning and has now reached commercial production and is being operated 24/7 under two 12-hour operating shifts per day.

James E. Sinclair, Executive Chairman of the company, said “I am delighted that we have achieved this important milestone in our gold production growth plan. We are now well-positioned to increase the production of gold significantly; and to accelerate our final feasibility on bringing a second, much larger plant on-line to produce more gold from processing the sulphide ore.”

A public tender for an increase in the treatment capacity of the oxide gold processing plant was recently completed. The Company is planning to start construction to increase the processing capacity of the oxide plant capacity by approximately 200% in the fourth quarter of this year.

Buckreef Gold Project

The Buckreef gold project is located in north-central Tanzania immediately to the south of Lake Victoria and 110km southwest of Mwanza. 

The project area comprises the dormant Buckreef Gold Mine and four prospects with known mineralization: Buckreef, Buziba, Tembo and Bingwa.

The project was acquired from the Tanzanian State Mining Company (Stamico) in December 2010. Under a Heads of Agreement concluded with the state-owned company, Tanzanian Gold Corporation has the right to earn a 55% interest in Buckreef with Stamico holding the remainder.

Tanzanian Gold Corporation (TSX: TNX) (NYSE American: TRX) recently announced that it has closed a financing agreement for up to USD14 million with RiverFort Global Capital.

The financing will be utilized for a significant expansion of the Buckreef Project oxide mining and processing operation, general corporate purposes, the advancement of a feasibility study for the larger sulfide mining complex, and the continuation of multiple drilling programs.

James E. Sinclair, Executive Chairman of Tanzanian Gold Corporation, commented: “We have dramatically grown our resource base at very low cost, increased the scale and scope of what we now feel will be the next world-class mine in Tanzania and have begun to unlock the tremendous blue-sky potential that exists with our continuing exploration and development programs. Critically, we have now become a gold producer. The financing will ensure the rapid expansion of oxide gold production, and by the end of the term of this agreement, we should reach our goal of becoming cash-flow positive.”

Buckreef Gold Project

The Buckreef gold project is located in north-central Tanzania immediately to the south of Lake Victoria and 110km southwest of Mwanza. 

The project area comprises the dormant Buckreef Gold Mine and four prospects with known mineralization: Buckreef, Buziba, Tembo and Bingwa. The project was acquired from the Tanzanian State Mining Company (Stamico) in December 2010.

Under a Heads of Agreement concluded with the state-owned company, Tanzanian Gold Corporation has the right to earn a 55% interest in Buckreef with Stamico holding the remainder.

The Bank of Tanzania (BOT) Quarterly Economic Bulletin of June 2020 shows that Tanzania’s gold production increased by 23.5% in Q4 2019, from 9,949 kg in September 2019 to 12,289 kg in December 2019

The value of gold produced in Tanzania increased by 16.7% during the same period, from USD 371 million to USD 432 million.

On a yearly basis, Tanzania’s gold production decreased by 1.9%, from 12,527 kg in December 2018 to 12,289 kg in December 2019.

However, the production value for the year increased by 11.8%, from USD 387 million in December 2018 to USD 432 million in December 2019.

The BOT indicates that this was due to higher gold price in the world market impacted by COVID-19 pandemic-related uncertainty and a weaker US dollar.

Tanzania Gold

Gold production in Tanzania stands at around 50t per year which makes it the 4th largest gold producer in Africa after South Africa, Ghana and Mali.

Gold exploration is centered mostly on the greenstone belts around Lake Victoria, where several large deposits have already been discovered and are being developed.

Tanzania’s Mahenge Liandu Graphite Project is one step closer to implementation with the submission of Environmental and Social Impact Assessment (ESIA) to the National Environment Management Council (NEMC).

This was announced on the 8^th of September by the project’s operator, Armadale Capital (LON: ACP), an investment group focused on natural resource projects in Africa.

NEMC explains that this is one of the final steps before recommendation for the granting of the environmental permit (ESIA approval) which will allow the granting of the mining license.

The Mahenge Liandu project is located in south-east Tanzania and has an estimated mine life of 15 years. The indicated mineral resource stands at 59.5 tonnes.

Armadale Chairman, Nick Johansen, commented: “We are delighted to announce another crucial step in the development of the Mahenge Liandu Graphite Project with the completion and submission of the Environmental and Social Impact Assessment, which is one of the final necessary components in the Mining Licence application process. I would like to thank all those involved for their efforts and we look forward to working with the NEMC as we advance toward the completion of this process.

“Alongside the progression toward receipt of the Mining Licence for the Project, which will be an important de-risking milestone for the Company, we maintain focus on finalising ongoing financing discussions so that we can commence construction and realise the value of Mahenge Liandu for the benefit of all stakeholders. Accordingly, we continue to positively engage in development funding options, including debt package and project level development funding, and our offtake workstreams are also progressing preparations to commence the Front End Engineering Design study (‘FEED’).”

Tanzania Graphite

Tanzania’s largest graphite deposits are located in the central and east southern regions of the country.

Graphite discoveries in Tanzania come mainly from Australia based graphite developers, Magnis Resources (ASX:MNS), Volt Resources (ASX:VRC) and Kibaran Resources (ASX:KNL).

Active graphite projects in Tanzania include Bunyu, Epanko, Nachu, and Namangale.

Gold mining company Shanta Gold (AIM: SHG) recently announced that the construction of the Singida gold project is being commenced.

The Singida project is an open pit gold project covering an area of about 98 km2 located in the greenstone belt within the Ikungi district in the Singida region of central Tanzania.

Total capital investment in the project comes at USD 26 million over a 24-month construction period. The investment will be funded by Shanta’s internal cash flows.

Expected annual production is projected at 32,000 ounces over an initial life of mine of seven years.

The Singida project currently employs 60 people, expected to increase to 300 at steady state production. Shanta is targeting a workforce comprising 100% of Tanzanian nationals.

Eric Zurrin, Chief Executive Officer, commented: “[…] Singida will have a major positive impact on the Ikungi region. Shanta intends to roll out its well-regarded CSR program into the surrounding villages which will lead to improvements in livelihoods, water, health and education.”

Tanzania Gold

Tanzania gold reserves are estimated at about 45 million ounces. Gold exploration has been centered mostly on the greenstone belts around Lake Victoria, where several large deposits have already been discovered and are being developed.

Tanzania’s gold production increased by more than 700% over the past 25 years, from 5 to 40-50 tonnes per year, while South Africa’s production of gold decreased from over 500 tonnes in 1990 to 117 tonnes in 2018.

Current active gold mines include Buckreef, Bulyanhulu, Buzwagi, North Mara, Geita, New Luika, and Golden Pride.

Barrick Gold Corporation (NYSE:GOLD) (TSX:ABX), the largest shareholder of Twiga Minerals Corporation, the joint-venture formed with the Tanzanian Government to take over the operations of Acacia Mining in the country, announced that it will spend USD 8 million on new explorations this year.

In its latest press release, Barrick president and chief executive Mark Bristow announced that the company has been awarded 10 new exploration licenses in Tanzania.

He also informed that the rehabilitated and re-energized the North Mara gold mine is ahead of plan in the year to date and that the Bulyanhulu gold mine has resumed underground mining operations and is scheduled to restart processing of underground ore by the end of 2020 as a long-life underground mine.

“We are gearing up to potentially make North Mara and Bulyanhulu into a combined Tier One complex, capable of producing at least 500,000 ounces of gold annually for more than 10 years in the lower half of the industry’s cost profile. We shall also be looking to expand the life of operations as well as other new Tanzanian opportunities within the Twiga framework” Bristow commented.

Tanzania Gold

Tanzania gold reserves are estimated at about 45 million ounces. Gold exploration has been centered mostly on the greenstone belts around Lake Victoria, where several large deposits have already been discovered and are being developed.

Tanzania’s gold exports accounted for USD 2.2 billion of total exports in 2019, representing more than 90% of the country’s mineral exports.

Twiga Minerals Corporation, the company established by Barrick Gold Corporation (NYSE: GOLD) (TSX: ABX) and the Government of Tanzania (GoT) to manage Barrick’s mining operations in the country has released in Q3 2020 update.

The company manages three gold mines: North Mara, Bulyanhulu, and Buzwagi.

In its update, Barrick explains that it has achieved several milestones in just one year, including resuming operations at North Mara, commencing mining at Bulyanhulu and kick-start a re-development plan for the mine to start processing in Q4 2020.

It has also been awarded 10 new exploration licenses in Tanzania and plans to spend USD 8 million on exploration in the country in 2020.

Twiga Minerals has also paid a maiden interim cash dividend of USD 250 million and Barrick has paid to GoT the first USD 100 million tranche of the USD 300 million settlement related to the past disputes with Acacia.

In addition, Barrick’s assets in Tanzania have paid more than USD 200 million to GoT in taxes and royalties, and USD 118 million on local contractors and suppliers, of which USD 41 million during Q3 2020.

Barrick has also committed to partner with the University of Dar es Salaam and fund a 10-year training and skills development in the mining industry, and to a USD 40 million upgrade of the road between Bulyanhulu and Mwanza as well as constructing a housing compound and related infrastructure.

Barrick President and Chief Executive Mark Bristow said: “The fact that so much value has been delivered in such a short time is a tribute to the power of what I believe is the first partnership of its kind in Africa. We are gearing up to potentially make North Mara and Bulyanhulu into a combined Tier One complex, capable of producing at least 500,000 ounces of gold annually for more than 10 years in the lower half of the industry’s cost profile. We shall also be looking to expand the life of operations as well as other new Tanzanian opportunities within the Twiga framework.”

Twiga Minerals Corporation

Twiga Minerals was formed after Barrick took over the operations of the former Acacia Mining in September 2019, and subsequently entered into a framework agreement with GoT. 

The new company was established in January 2020 and is owned for 84% by Barrick and 16% by GoT, and is based on 50/50 sharing of the economic benefits generated by the mining operations after the recoupment of capital investments.

Tanzanian Gold Corporation (TSX: TNX) (NYSE MKT: TRX) recently appointed Stephen Mullowney–former Partner and Managing Director of PWC and Canada’s mining deal leader–as CEO.

Mullowney has an extensive mining background, working with miners, governments, and institutional investors across the world and supporting them in making key strategic business, financing, and policy decisions.

Tanzanian Gold Corporation is developing the Buckreef gold project in north-central Tanzania immediately to the south of Lake Victoria and 110km southwest of Mwanza. 

The project area comprises the dormant Buckreef Gold Mine and four prospects with known mineralization: Buckreef, Buziba, Tembo and Bingwa.

The project was acquired from the Tanzanian State Mining Company (Stamico) in December 2010. Under a Heads of Agreement concluded with the state-owned company, Tanzanian Gold Corporation has the right to earn a 55% interest in Buckreef with Stamico holding the remainder.

Commenting on his appointment, Mullowney said: “I am pleased and enthusiastic to join Tanzanian Gold Corporation as it moves from being a junior gold mining operation toward a large-scale commercial gold mining enterprise. I look forward to and welcome the opportunity to work with our Joint Venture partner, Stamico. We have significant and profitable prospects and opportunities for our company and Tanzania. I look forward to using my skills and abilities in the achievement of our goals for success.”

On 19th January 2021, the Ministry of Minerals of Tanzania signed an investment agreement with Kabanga Nickel Limited of the UK (formerly LZ Nickel Limited) for the development of the nickel mining project in the East African country.

Located 130 km southwest of Lake Victoria in the Ngara District of the Kagera Region in northwestern Tanzania, Kabanga is the largest development-ready nickel sulfide deposit in the world, unmatched in scale and grade, with at least 30 years life of mine and further exploration upside.

The project was previously owned by a joint-venture between Barrick Gold Corporation (Barrick) and Glencore until 2018 when the Magufuli administration revoked their license following the introduction of new mining bills in 2017.

The Government of Tanzania and Kabanga Nickel have agreed to form a joint-venture, Tembo Nickel Corporation, which will own two subsidiaries: Tembo Nickel Mining Company which will be involved in Nickel mining in Kabanga, and Tembo Nickel Refinery Company which will be involved in mineral refining in Kahama, Shinyanga.

As per the new mining laws, Tanzania enjoys a 16% free-carried interest (equity interest granted to the State by the company holding a mining license), and 50/50 sharing in the economic benefits generated by the mining operations (after the recoupment of capital investments.)

President Magufuli praised the plan to build a smelting and refinery plant in Kahama. On its website, Kabanga Nickel explains that by producing refined metals (class 1 nickel, cobalt, and copper refined metals) the company will share more value with the people of Tanzania, which is consistent with the Government’s policy initiatives of in-country beneficiation and local value addition.

These fully refined strategic metals will be exported directly to customers around the world while retaining the significant value and flow-on benefits within the country.