JPM ban threatens 2 gold mines

Dar es Salaam. Acacia may close two of its mines if the government enforces President John Magufuli‘s ban on gangue exports.

A day after Dr Magufuli’s order in Mkuranga, the Ministry of Energy and Minerals informed mining companies that gangue exports had been banned.

The ministry ordered the companies to process it locally.

The ministry’s permanent secretary, Prof Justin Ntalikwa, said concentrates and metallic minerals ore for gold, copper, nickel and silver would no longer be exported.

According to the statement, the ban started on Thusday.

It said the move aimed at ensuring that ores are processed before minerals are exported as part of the implementation of the Mining Policy of 2009 and the Mining Act, 2010.

It also stated that by doing so, employment would be created employment, skilles enhanced, better technologies used and government revenues increased.

But Tanzania Chamber of Energy and Minerals (TCEM) fears that some companies will close up shops as substantial amounts of their incomes are drawn from gangue processing. TCEM executive secretary Gerald Mtuli named the mines to be affected as Acacia’s Buzwagi and Bulyanhulu.

“There are also mineral concentrates from Geita and North Mara mines, but they come from types of rocks that are different from those of Buzwagi and Bulyanhulu.”

According to him, gold ore rocks found in Buzwagi and Bulyanhulu are processed by a smelter which Tanzania does not have. “We need a smelter for the work and building it will take time.”

He said if the two mines are forced to process their ores without a smelter they would get 50-60 per cent of gold while the remaining 40 percent will be lost in the gangue.

He warns that Buzwagi will survive for about three months and wind up activitywhile Bulyanhulu’s production and profits will fall sharply.

“It is unlikely that the two mines will survive with 40 per cent of their incomes reduced.”

He advised Tanzania to rescind the ban to save companies, employment and enable the government to earn taxes.

He called on the government to find an investor for construct the smelter before banning gangue exports.

Reached for comment, the Acacia vice president for corporate affairs, Mr Deo Mwanyika, said he was in Dodoma and advised to call the mines public relation manager, Necter Foya, who requested the questions to be sent to him by SMS. Later, he could not be reached.

Meanwhile, Geita Gold Mine communications and public relations manager Tenga Tenga said the order would not affect the operations as gangue produced could be processed locally.

According to him, only gold bars are exported after the Tanzania Mineral Audit Agency and the Tanzania Revenue Authority inspect them.

“After they are inspected the authorities seal and stamp them ready for export,’ he said.