Pay dividends before next fiscal year, Stamico told

Dar es Salaam. The minister for Minerals, Mr Dotto Biteko, has directed the new board of State Mining Corporation (Stamico) to ensure that it pays dividends to the government before the next financial year starts.

Mr Biteko was speaking on Tuesday during the inauguration of the new company board of directors.

The mining firm was established 47 years ago had never paid any dividend to the government as it incurred losses each year.

“This is not acceptable. Before my ministry tables the 2019/20 budget, I want to record for the first time that Stamico has paid dividend to the government,” he warned.

He said the government invested $11 million in the Stamgold project and instead of generating profit, the state mining incurred a debt of more than Sh65 billion.

However he directed the board to make a follow-up of shares of the Tanzania Gemstone Industries (TGI) in which Stamico has ownership.

He said TGI is a subsidiary of Stamico, which was registered in 1969 to engage in mining and gemstone exploration.

Mr Biteko said since then Stamico had never made any follow-ups on the shares, the new board should investigate the matter to know how many shares are currently owned by state mining.

Earlier, the board chairman, Maj Gen (rtd) Michael Isamuhyo, said he met with board members and found out that they could deliver and meet expectations.

“I assure you that we will implement all directives you have given and turn challenges into opportunities,” he promised. Stamico is a wholly-owned government enterprise established in 1972 under the Public Corporations Act, 1969.