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APRIL - JUNE 2016 VOLUME 04 / ISSUE 2 9 772308 I 006008 SSN 2308-006X A BRIGHTER OUTLOOK- TZ Long-term potential of Tanzanian mining industry impressive Minerals chamber warns mining, oil firms 10bn - support extended to artisanal miners Mtwara cement plant to spur Tanzania’s economy Mozambican graphite finds a market in China www.eastafricanminingnews.com THE PRIME SOURCE OF EAST AFRICAN MINING NEWS

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Page 1: APRIL - JUNE 2016 THE PRIME SOURCE OF EAST …eastafricanminingnews.com/wp-content/uploads/2017/03/eam... · 2017-03-31 · tawandash@gmail.com Physical Address: Old Bagamoyo Road,

A PRIL - J UNE 2016VOLUME 04 / ISSUE 2

9 772308

I

006008 SSN

2308-006X

A BRIGHTER OUTLOOK- TZLong-term potential of Tanzanian mining industry impressive

Minerals chamber warns mining, oil fi rms

10bn - support extended to artisanal miners

Mtwara cement plant to spur Tanzania’s economy

Mozambican graphite finds a market in China

www.eastafricanminingnews.com

THE PRIME SOURCE OF EA ST A FRICA N MINING NEWS

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A PR - J UN 2016 | 1

Contents4 News in Brief

Local News6 Geological body sets goals to boost investment in

mining sector

8 Tanzanian gemstone miner blasts govt for

inaction against illegal mining

9 Long-term potential of Tanzanian mining industry

impressive

11 Tanzania and Mozambique locked in a gas race

12 Russia’s ARMZ owes Tanzania Govt $206m in

taxes

14 Minerals chamber warns mining, oil irms

16 10bn - support extended to artisanal miners

18 100 non-starter mining licenses scrapped

20 Rukwa coal projects investor secures

environmental nod

22 Mtwara cement plant to spur Tanzania’s economy

23 Stakeholders call for uranium mining policy

Feature - Pumps24 African mines drive pump sales

25 Hytec / Bosch Rexroth joint venture: A landmark in

sub-Saharan hydraulics and automation

Products and Services26 MineARC releases StormSAFE Cyclone Shelter,

designed for extreme weather conditions

27 New models brighten TowerLights appeal

28 RustPrufe: A must-buy anti-rust coating

International News30 Graphite prospecting in northern Mozambique

attracts another Australian company

32 Areva remains committed to Namibia despite

depressed Uranium Prices

34 Tanzanian gemstone miner blasts govt for inaction

against illegal mining

36 Mozambique’s EITI report shows that state revenues

are in line with company payments

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33. XPS Consulting & Testwork

Services

35. Source-Supply

Inside Back Cover: NuWater

Outside Back Cover: Sulzer Pumps

EAST AFRICANMINING NEWS

Publisher

Evans Mumba

Editor

Hicks Sikazwe

[email protected]

Editorial Contributors

Peter Nyagabyaki, Nathan

Santabire, Frederick Wathabu,

Martin Tobias

Advertising Sales

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Denis Mugode,Kiboi Wangandu,

Kelvin Duke, Nkhosana Mkhize

Administration & subscription

Hazel Mukwamba, Doris Likonde

Design and Layout

Tawanda S. Hojane

[email protected]

Physical Address:

Old Bagamoyo Road, Mayfair Plaza

Mini Mall

Ofice Suite 105/106

Postal Address:

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Dar es Salaam, Tanzania

Tel : +255 767 658840

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CONTENTS

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4 | A PR - J UN 2016

Tanzanian group builds mini steelworks in Mozambique

Tanzania revises up coal reserves to as much as 5bn tonnes

Tanzania’s Mining Sector Forecast to Stagnate

Zambia, Congo, Tanzania railways sign deal to free up trac

Tanzania’s Moisun group (htp://moisungroup.com/) is building a mini steelworks in Nacala, Mozambique, through its subsidiary MM Integrated Steel Mills Mozambique, Tanzanian newspaper East African Business Week reported.

The group, which focuses its business on steel producion, is building similar steelworks in Uganda, Zambia and Tanzania.

The spokesman for Integrated Steel Mills Tanzania, Mlawa Abubakar, told the newspaper that the Nacala unit is its inal stages, but said he could not give a date for the steelworks to start operaing.

“ We have manufacturing units of the same kind in Uganda, Zambia and Tanzania and we intend to expand further,” said Mlawa, who declined to disclose the cost of the mini steel works in Nacala.

The Moisun group has made investments in steel, mining, cement, plasics, paints, food processing, hospitality, construcion and cables and does business in Tanzania, Zambia, Uganda, Mozambique, Democraic Republic of Congo, Malawi and Sudan .

Tanzania has coal reserves of up to ive-billion tonnes, more than thrice its previously stated igure of about 1.5-billion tonnes, Energy and Minerals Minister Sospeter Muhongo said recently.

Tanzania produces coal from two mines mainly for domesic use, such as power generaion. It has plans to increase its coal-ired power generaion capacity and could also export more.

Developing coal producion is part of broader

energy strategy, which includes exploiing recent big gas inds.

“ Tanzania’s total coal reserves were previously esimated at 1.5-billion tonnes and are now expected to have reached up to ive-billion tonnes,” the energy and minerals minister told a conference in Dar es Salaam.

“ The government’s power generaion mix will focus on generaing power from natural gas, coal, hydropower and renewable energy sources,” he said.

In 2011, China’s Sichuan Hongda Co. Ltd. signed a $3-billion deal with Tanzania to mine coal and iron ore and build a 600 MW coal-ired power plant.

Tancoal Energy, a joint venture between Australian-listed Intra Energy Corporaion and Tanzania’s government, runs the Ngaka coal project, while Tanzania’s other mine at Kiwira is run by the state.

The government said plans were under way for Kiwira and Tancoal to each have power plants with 400 MW capacity.

Recent oil and gas inds in the east African naion are also expected to turn Tanzania into a hydrocarbons exporter.

The ministry’s permanent secretary, Eliachim Maswi, told Reuters Tanzania would require a signature bonus of at least $2-million from irms winning blocks in an October oil and gas exploraion bid round.

The government has said it plans to have in place new legislaion to regulate natural gas during 2013/14 and this will come ater the adopion of the natural gas policy.

“ I believe before the end of next month we will have a natural gas policy,” Maswi said, speaking on the sidelines of the conference in the Tanzanian capital.

Growth of the Tanzania’s mining industry is forecast to stagnate probably unil 2018 on account of low gold producion, World Mining Report says.

Although gold metal is the sector’s mainstay, with the country being the fourth global producer, there are plans by the country to diversify into producion of nickel, coal and uranium in the long term to compliment the shorfall, the report adds.

The mining industry is relaively small in terms of value, but its importance is highlighted by the fact that mining earns a signiicant share of the country’s export revenues.

Major foreign investors in Tanzania’s mining sector include African Barrick Gold and

The Naional Railways of Zambia, Democraic Republic of Congo and Tanzania have signed an agreement to make it easier to transport goods such as copper by rail between the countries, an o�cial said in a statement release to Tanzanian Mining Review.

Unil now, railway tra�c has oten been held up by paperwork and procedures such as unloading goods for inspecion at every border crossing.

Railway companies in Zambia, Africa’s top copper producer, will now pick up copper from the mines for direct transportaion to the port of Dar es Salaam, Tanzania Zambia Railways (Tazara) spokesperson Conrad Simuchile told the Media.

Zambia exports the bulk of its copper through the port of Durban in South Africa. Most mining companies transport the metal by road because railway transport has been unreliable.

With this agreement in place, cargo can now move in either direcion from Dar es Salaam in Tanzania to New Kapiri-Mposhi in central Zambia and Lubumbashi in Congo and vice versa without a lot of customs and other procedural complicaions, Simuchile said.

Mining companies operaing in Zambia include Canada’s First Quantum Minerals, Vedanta Resources Plc, Glencore Internaional and Barrick Gold Corp.

AngloGold Ashani, among other mulinaional companies operaing in the East African state.

Tanzania is home to signiicant deposits of coal, cobalt, copper, diamonds, gold, nickel, silver and uranium, although Tanzania has long been a producer of gold (Africa’s fourth-largest producer) and diamonds.

In the long term it is envisaged that coal, nickel and uranium producion are likely to become sub-sectors of Tanzania’s mining sector.

However, the report adds that over the forecast period to 2018, weak commodity prices will precipitate stagnant gold producion growth and are likely to delay potenial new projects.

A possible expectaion is that Tanzania’s mining sector may remain relaively uncompeiive as high taxes and royalies weigh on mining companies.

The mining code, updated in 2010 at the height of the commodiies price boom, is relaively more burdensome than the mining codes of the bulk of other African countries.

As such, Tanzania is likely to ind itself at a compeiive disadvantage as mining companies look to slash capital expenditure in an era of weakening commodity prices.

The Tanzania Mining Report has been researched at source and features Business Monitor Internaional (BMI)’s mining and commodity forecasts for metals, minerals and gems, covering all major indicators including reserves, producion, exports and values.

The report also analyses trends and prospects, naional and mulinaional companies and changes in the regulatory environment.

The Business Monitor Internaional (BMI)’s in the Tanzania Mining Report provides industry strategists, service companies, company analysts and consultants, government departments, trade associaions and regulatory bodies with BMI’s independent forecasts and compeiive intelligence on the mining industry in Tanzania.

Tanzania’s President Jakaya Kikwete has been instrumental in seeking to drive the mining sector to sustain the economy.

NEWS IN BRIEF

WWW.EA STA FRICA NMININGNEWS.COM

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6 | A PR - J UN 2016

Geological body sets goals to boost investment in mining sectorIn an efort to render quality services to its clients, the Geological Survey of Tanzania (GST) has set standards aimed at improving mineral exploraion and mining in the country.

his government

Tenity has recently implemented such a project through Sustainable

Management of Mineral Resources Project (SMMRP), a scheme which is under the supervision of the Ministry of Minerals and Energy.

GST Chief Execuive Professor Abdulkarim Mruma says that his o�ce has used SMMRP fund to conduct high resoluion airborne geophysical survey in Dodoma, Bahi, Kongwa, Mpwapwa, Kondoa, Chamwino, Manyoni, Ikungi, Singida, Simanjiro, Arumeru and Mbulu districts.

Other districts are Monduli, Moshi, Kilosa, Gairo, Bagamoyo, Chunya, Mbozi, Handeni, Kilindi, Korogwe, Chemba, Mvomero and Mbarali districts. There have also been magneic,

radiometric and gravity data surveyed by Sanders Geophysics limited using Cessna 208B Grand Caravans.

According to him, the survey helps other sectors of economy, such as ground water exploraion, geotechnical exploraion, hydro carbon exploraion and it plays great role in environmental studies.

He insists that such data are available at the GST o�ces in Dodoma, and are open to all that want to conduct diferent studies aimed at improving their performance in the mining industry.

A total of 556,910 line km of magneic and radiometric with line spacing of 250m and ie lines of 2.5km intervals were surveyed. A total of 57,980 km of gravity were surveyed with line spacing of three kilometre and ie line 20km interval.

The ground clearance for aforemenioned surveys was 60km.

Speaking at Saba Saba grounds in Dar es Salaam recently, Prof. Mruma said that Versaile Time Domain Electromagneic Surveying (VTEM) was being implemented in Mpambaa, Sambaru, Londoni, Iramba-Sekenke and Handeni- Kilindi blocks.

“ The importance of such a survey is that it allows fast and accurate delineaion of mineralized targets (anomalies), and when augmented with geological and geochemical data sets are highly efecive in atracing new exploraion and improve efeciveness on exploraion programmes,” he says. Professor Mruma invites all who want to use such data to improve performance at their place of duty to visit his o�ce in Dodoma and get all possible assistance.

Concerning geological mapping, Prof. Mruma explains that GST has done extremely well because his insituion earlier had the capacity to conduct only four Quarter Degree Sheets (QDS), but this ime around, the insituion covered a record 18 QDS.

Concerning the Data base, Prof. Mruma says the area has much more been improved because through the World Bank, the data base has beter capacity to save more data related to minerals survey, mining areas, companies involved in the mining, and issuance of mining licences.

In the recent past, GST has tried its level best to improve its mineral laboratory service, says Professor Mruma. In implemening this project efecively, GST recently ordered modern equipment needed by diferent stakeholders in the industry.

The project is expected to

make this laboratory the best in the country and generally in East Africa, says Chief Execuive Professor A. Mruma. The GST laboratory is among the leading establishment in the East and Central Africa which undertakes chemical, mineralogical, petrological analyses of mineral, soil, rock and water samples.

It also provides services on environmental studies and mineral beneiciaion tests. GST Laboratory has developed a Quality Assurance System (QAS), which complies with the ISO/IEC 17025-General Requirements for the Competence of Tesing and Calibraion Laboratories.

Laboratory services ofered by GST include sample preparaion, ire assay and wet chemistry analysis. The chemical

laboratory at GST performs a wide range of determinaions, which include water analysis (both clean and waste) for various components, sulphates, conducivity, and salinity.

Pollutant elements (metals) such as mercury, lead, zinc, cadmium, arsenic and selenium tests can also be done at GST. According to Prof. Mruma, the mineralogy and petrology laboratory secion is equipped with modern faciliies for sample preparaion, analyzing diferent minerals, rocks and idenifying gemstones.

The GST laboratory ofers services on preparaion of thin and polished secions, micro petrographic studies and gemological studies. The laboratory ofers services for rock cu�ng and polishing as per customer demand. The laboratory cuts and polishes specimens for dimension and decoraion stones.

He says that the minerals processing laboratory incorporates faciliies for technology tesing in mineral separaion using magneic, electrostaic, gravitaional, froth lotaion and gold cyanidaion techniques. Upgrading tests on industrial minerals are also conducted.

Teaching kits containing rocks and minerals are supplied to schools and other training insituions as teaching materials. According to the GST Chief Execuive, petro-physical properies of rocks are essenial for interpreing geophysical measurements and in assessing geochemical, mineralogy and geophysical consituents of rocks.

“ GST also undertakes petrophysical measurements for determining petrophysical properies of rock and ore samples. The GST library is also the main library for geo-science informaion in the country,” he

says. It provides services to staf, geo-scieniic organisaions and universiies as well as members of the public. Professor Mruma says that the GST library holds more than seven thousand (7,000) items.

The holdings include more than seven hundred (700) geologic maps and more than 2,800 geophysical maps. The Geological Archives render services to GST staf and external customers. External customers are normally charged minimal charges for search service.

The Archives database contains unpublished, classiied, and open ile reports, ield notebooks, maps, old mine plans and slides. The ime coverage of the reports is

ABOVE:The Geological Survey of Tanzania (GST) Field Team extracting samples

LOCAL NEWS

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A PR - J UN 2016 | 7

from 1885 to present. Copies of the material can be ordered (price list). Also increasing amount of reports is available in full-text and the material can be studied in the GST is the naional custodian for drill cores.

GST houses thousands of meters of diamond drill cores obtained from drilling operaions carried out by mineral exploraion and mining companies and GST. The Rock Library contains varieies of rock and mineral samples from the mapped areas of the country.

These samples are well documented and are available to the investors and researchers. The museum has a variety of rocks, minerals and fossils collected from within the country and abroad. The Geological Museum has an exchange program with other Geological Museums in the world, whereby exchanges are made for geological samples and other materials including, meteorites and fossils for similar samples from other parts of the world.

Visitors from Tanzania and outside the country visit the Museum to see and learn from the rich geological collecions of Tanzania and some of the products of GST. The organizaion wants to further improve geological mapping, mineral exploraion, evaluaion, processing, and research work.

It is in such a background that the World Bank has hailed GST for implemening a grand geophysical research project last year, which used airplane to survey diferent regions countrywide with great success.

Funcions of GST include collecion, processing, interpreing and achieving various geo-data and informaion {geological, geophysical, geochemical, mineral occurrence} essenial in creaing a beter understanding of the mineral resources potenial of the country and their prospecing criteria.

These data and informaion also contribute to beter understanding of the geological environment of the country. “ We prepare the geo-scieniic map of the country(i.e. geological, geophysical, geochemica, mineral occurrence, geo-technical and environmental map) as well as disseminaing the geo-data, informaion and maps to the stakeholders for various use”, says Professor Mruma.

GST provides geo-scieniic laboratory services to the stakeholders (paricularly geochemical, petro graphic, petrophysical and geo-technical analysis of rocks, minerals, soils, water and plants samples), he says. Prof. Mruma adds that the insituion monitor natural geo-hazards (paricular earth quakes, volcano, landslides, radiaion, leached materials from the bed-rock and fumaroles) and advice on their miigaion measures.

With massive endeavor GST conduct geo-tacical services and provide advice on suitable sites for placing civil structure as well as suitable earth materials for the construcion, he says.

“ GST monitor environmental impact of mining and the advice for miigaion measures and provide extension services to arisanal and small scale miners paricularly on classiicaion of minerals, idenifying the characterisics of the ore (geometry, posiion, and metallurgy) and appropriate of processing the ore”, says Prof. Mruma.

GST also provides technical service to large scale miners, construcion industry, the government and the general public, he says. GST expects to acquire a modern geotechnical laboratory that shall be used to analyze soil and rocks. The facility has the capacity to examine the strength of soil/rock before a paricular project on the same area takes of.

It can be applied during the construcion of storey buildings, wells and roads. This laboratory will be of great importance at this ime when some buildings and other construcion works are being developed without taking into consideraion the geotechnical and the environment of the paricular area.

LOCAL NEWS

WWW.EA STA FRICA NMININGNEWS.COM

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8 | A PR - J UN 2016

Tanzanian gemstone miner blasts govt for inaction against illegal miningGemstone producer Richland Resources has lamented a “ signiicant” increase in illegal underground mining at its Tanzania-based joint venture (JV) tanzanite operaion with the State Mining Corporaion of Tanzania (Stamico), claiming that illegal miners were entering underground areas from neighbouring blocks and presening a danger to its employees.

“ While 2013 saw the beginning of acion by the Tanzanian government against illegal tanzanite miners, ulimately, a comprehensive soluion failed to be implemented and one of our employees was tragically shot dead by armed atackers,” CEO Bernard Olivier said in the company’s year-end results statement .

According to the company, “ very substanial” damage had also been made to mining infrastructure at its Bravo, Delta, Investor and CT shats, accompanied by the “considerable” thet of gemstones, especially the high-quality gemstones.

Owing to the aggressive nature of the incursions, which saw the illegal miners carrying irearms and homemade explosive devices, and the moratorium placed on the group by the government to protect its workforce, producion was again scaled back in the 2013 iscal period.

Olivier noted that, following the issue of the mining licence, the government coordinated an iniial efort to clear illegal miners from Block C, which later resulted in the removal of illegal miners from the northern area of the block.

“ Since that ime, however, no further physical acion has been taken by the government to clear illegal miners from the other areas of Block C. Safe and producive mining cannot be carried out by the company in

any of the uncleared areas,” he commented.

The board said it had understood that, following the formalisaion of the JV with Stamico in December, the illegal miners in Block C would be removed, allowing reinvestment in the mining infrastructure and therefore boosing producion.

“ However, owing to government inacion, we coninue to be unable to operate in most of the undersigned mining areas in the mining licence area, said the company.

REVENUE DEPRESSIONThis had impacted on

Richland’s inancial posiion, with the company reporing revenue for the year ended December 31, of $11.6-million, 29% lower than the prior year’s $16.4-million.

In addiion, following the JV agreement between Richland subsidiary TanzaniteOne Mining (TML) and Stamico, TML revenues for the second half of the year had been reduced to account for Stamico’s 50% share of mine revenue.

Cost of sales, selling and distribuion, and administraive expenses was $12.2-million for the year, represening a decrease of 37% on the prior year, primarily owing to the group’s cost cu�ng measures, and the JV, which halved TML’s mine costs.

Other operaing expenses for the year of $4.6-million were 54% lower than the prior year,

predominantly owing to lower impairment charges and lower taxes and penalies.

The company posted a net loss for the year of $4.5-million, ending the year with a net cash posiion of $500 000.

TANZANITE OUTPUTDespite its challenges over

the period, Richland again achieved a record volume producion of tanzanite in 2013, with 3.45-million carats of tanzanite produced from processing 30 906 t of ore, with an average grade recovered of 112 ct/t.

This came as the company achieved a signiicant upgrade

of its tanzanite resource at its Merelani mine, announcing a Joint Ore Reserves Commitee- (Jorc-) compliant indicated resource of 30.6-million carats and a Jorc-compliant inferred resource of 74.4-million carats, totalling a combined resource of 105-million.

The on-mine cash cost at Merelani for the period fell 22% to $3.47/ct and was atributed to increased atenion to e�ciencies and the recycling of used equipment.

The mine’s dense media separaion plant processed 30 906 t in 2013.

LEFT: Gemstone

inspection

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A PR - J UN 2016 | 9

Long-term potential of Tanzanian mining industry impressive Tanzania’s mining industry is facing its toughest period in recent years owing to the gold price affecting the sector this year, says consultancy firm Africa Pracice senior consultant Tom Savory.

e explains that,

Hdespite this, the country has had some success in

this sector, as it emerged in the late 1990s and grew robustly in the 2000s. As a result of the last decade’s strong upward price trajectory, Tanzania’s mining industry boomed.

Current State of the Industry

Tanzania’s gold mines are some of the most expensive operaing mines in the world – at $1 300/oz – there are genuine proitability quesions, Savory notes, adding that the Tanzanian government is pushing hard for addiional revenue collecion from the gold sector.

“ Retroacive applicaion of new royalty rates is sill disputed, while a dispute over value-added tax refunds, coupled with slow administraive processes, means that the Tanzanian Revenue Authority has millions of dollars of mining company funds locked away,” he says.

Savory adds that although mining companies received enviable deals in the late 1990s and early 2000s, government is unfortunately damaging long-term investor conidence in Tanzania by aggressively reneging on its responsibility to uphold its side of the contracts.

“ The costs of securing mine sites is increasing, with hundreds of incursions taking place daily at some sites, and, unfor- tunately, falls and deaths at mines by intruders have happened,” he states.

Savory emphasises that there are sill some smaller, more lexible companies that have developed less costly mines, which is creaing posiive momentum for gold in Tanzania.

The status for other metals in the country is more posiive, he adds. Tanzanite miner TanzaniteOne has registered a posiive response to its partnership with State mining company Stamico.

According to the company’s website, the world’s only tanzanite-producing area is located near Mount Kilimanjaro. Only 2 km wide and 4 km long, it is split into mining blocks A, B, C and D.

TanzaniteOne holds the licence to mine the largest

of these – Block C. Using sophisicated hard-rock mining techniques at down-shat depths of up to 900 m. Local arisanal miners mostly mine the remaining blocks.

Further, mining group Petra Diamonds’ Williamson diamond mine, south of Mwanza, has also recorded signiicant investment in redevelopment. This has resulted not only in promising extracion results, but also, according to the company’s website, increasing the life of the mine from 20 years to 50 years, as 39.4-million carats of the major resource has been revealed.

Tanzania will also be exporing uranium shortly, as uranium mining company UraniumOne is making posiive progress with its uranium project in the south of Tanzania.

According to Tanzanian media, the Mkuju River site is said to contain at least 36 000 t in known uranium deposits.

Exporing the uranium is likely to spark new interest in the strategic metal. Several irms have good exploraion projects, but the low price of uranium has led to these irms struggling to develop the projects, says Savory, adding that, by proving that the industry is proitable in Tanzania, it will be easier to address challenges and raise funds.

Future Gold ProspectsSavory explains that

exploraion expenditure is currently at an all ime low, owing to a decrease in global prices, and market-speciic factors, keeping costs high.

BELOW:Tanzanian Gold Mine

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If prices return to $1 800/oz, the industry’s energy will re-emerge. However, if the price drops below $1 000/oz, it would end the current era of large gold mines in Tanzania in the short term.

Challenges

Savory notes that there has been a diplomaic push for the fast-tracking of nickel producion, with the US and Tanzanian government atemping to bring the idea to the surface. “ However, realisically, with huge energy and infrastructure needs, the sector is unlikely to develop in the next ive years. The coal sector mirrors this, with small deposits unlikely to be commercialised without signiicant developments in transport infrastructure and power generaion,” he explains.

Access to power in most of Tanzania’s mining areas is almost nonexistent and, therefore, miners are forced to invest in grip extensions or use expensive (heavy fuel) generators.

The current transport infrastructure is suitable for the low volume or high-volume minerals, such as gold and gems, but to develop nickel or coal projects will require signiicant upgrades of ports, rails and roads to make them commercially viable, says Savory.

The discovery of major gas deposits in Tanzania’s deep ofshore will most likely revoluionise the country’s economy in the next decade. Tax revenues generated from exports could potenially dwarf those of the mining industry, says Savory, noing that it is di�cult to predict how government will react to these changes, especially with one, if not two elecions prior to the compleion of any projects.

Soluions

The Tanzanian government recently announced the Big Results Now iniiaive, which is a comprehensive system of implementaion that will focus on six priority areas of the economy –

energy and natural gas, agriculture, water, educaion, transport and mobilising of resources. The aim of the iniiaive is to help develop Tanzania into a middle-income country.

With the delivery targets falling just prior to what will be a landmark general elecion, there is considerable poliical will to secure measurable progress. The Ministry of Energy and Minerals (MEM) is leading government’s public pledges on acion, and the MEM’s targets centre on energy generaion and distribuion.

Further, as transport infrastructure is a priority area of the Big Results Now iniiaive, rail, road and ports are scheduled to be upgraded; however, realisically funding of these projects is a major issue and it is unlikely that the iniiaive will deliver in the sector.

One project that is likely to make a diference to transport, however, is the development of a new port in Bagamoyo, north of Dar es Salaam. Funded by China, the project will be a centrepiece of President Jakaya Kikwete’s legacy and is likely to be prioriised over the next few years.

A new port will dramaically increase Tanzania’s commercial compeiiveness, as there is currently an over-reliance on Dar es Salaam’s notoriously corrupt, slow and overburdened faciliies, making logisics di�cult, says Savory.

US president Barak Obama’s Power Africa iniiaive, a commitment of $7-billion to expand energy access across the African coninent, is also set to build momentum and raise private-sector interest in Tanzania’s power sector, while the Mnazi-Dar gas pipeline will also add extra power generaion to the commercial capital. The 532-km-long pipeline will carry Mnazi Bay gas along the main line to Dar es Salaam and other major populaion and industrial centres. The iniiaive and pipeline could make a diference to the operaing environment for miners, if fully successful, says Savory.

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The prioriisaion of distribuion to the ever poliically signiicant Tanzanian consumers, however, means that mining companies are unlikely to beneit directly in the short to medium term, even in the unlikely event of Tanzania achieving such ambiious infrastructure developments, states Savory.

He notes that with so many abundant metals, the long-term potenial of the Tanzanian mining industry remains impressive.

“ However, realising success depends on poliical will and the development of infrastructure to enable these projects to become commercially viable

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Tanzania and Mozambique locked in a gas raceTanzania, which is si�ng on natural gas reserves esimated at double Europe’s annual demand, wants the country’s future liqueied natural gas (LNG) terminals to be built onshore to beneit the domesic economy, its energy minister said.

Tanzania and its southern neighbour, Mozambique, are locked in a race to be irst to export gas from Africa’s eastern seaboard ater huge discoveries ofshore recently that could transform their struggling economies.

Both face hurdles. Tanzania has yet to inalise its natural gas policy, while debate rumbles on over how much gas should be sold to foreign investors and

how much let for domesic consumpion in a country historically dogged by power outages.

Britain’s BG Group and Ophir Energy have been at the forefront of exploraion in Tanzania, while energy majors Exxon Mobil and Statoil have also found gas. BG and Statoil said in March they planned to

build a $10 billion LNG terminal.“ No LNG plant will be built

ofshore. We have rejected those proposals,” Sospeter Muhongo, Tanzania’s energy and minerals minister, told Reuters in an interview recently.

Muhongo said Statoil and BG were expected to submit proposals for a plant soon.

Natural gas is the fastest-growing fossil fuel and the

region’s proximity to Asia’s major LNG consumers makes its reserves atracive to energy majors.

“ Tanzanians have been farming since independence, but remain poor. We want the gas economy to beneit all Tanzanians,” the minister said.

Like Mozambique, Tanzania needs to overcome

challenges before exports

commence, including passing legislaion to encourage and safeguard investors, securing new investment for costly infrastructure and allaying corrupion fears.

Tanzania, which is drating a new gas policy, plans to hold its next oil and gas licensing round on November 25. It will ofer seven deepwater ofshore blocks and one onshore.

“ The gas policy will be taken for cabinet approval soon,” Muhongo said. Once that is done, a bill will be put to parliament.

He declined to put forward a imeframe for the irst LNG exports out of Tanzania, East Africa’s second-biggest economy.

“ These are technical issues. The companies will conduct their own studies to pick locaions for LNG plants onshore and decide when they will start construcion and ulimately gas exports.”

Given their diferent poliical and regulatory environments,

energy consultancy Wood

Mackenzie expects Mozambique to export its irst LNG cargo by 2019, while Tanzania will have to wait unil 2021.

The Tanzanian government will be keen to show gas windfalls will beneit the whole naion ater violent protests in the south earlier this year by residents opposing the construcion of a gas pipeline unil they get a bigger share of beneits.

The southern Mtwara region, where the demonstraions took place, is one area earmarked by the government as a potenial site for LNG plants. The government has accused opponents of fomening trouble and has promised transparency.

“ There is no chance for corrupion, favouriism or propaganda in the ongoing gas development,” Muhongo said.

ABOVE:Tanzanian GAS liquefaction plant

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Russia’s ARMZ owes Tanzania Govt $206m in taxes

12 | A PR - J UN 2016

Tanzania is demanding almost $206-million in taxes from Russian state uranium company JSC Atomredmetzoloto (ARMZ), which has won a licence to build the east African country’s rst uranium mine, the energy minister said recently.

ussia’s ARMZ is the

R mining arm of Russia’s nuclear regulator, Rosatom, which also build nuclear reactors.

Tanzania’s tax claim related to the Mkuju River project in southern Tanzania, which was operated by Toronto-listed Uranium One, but owned by ARMZ, the Canadian uranium producer’s majority shareholder.

“ The Mkuju project ...was sold in December 2010 to ARMZ of Russia ater acquiring shares from the parent company, Mantra Resources of Australia,” Energy and Minerals Minister Sospeter Muhongo said in a

newspaper adverisement of his ministry’s 2013/14 budget proposals, which were tabled in parliament a couple of months ago.

“ Following this deal ... the Tanzania Revenue Authority is claiming $205.80-million, of which $196-million was supposed to have been paid as capital gains tax and $9.8-million as stamp duty.”

Muhongo said the company had disputed the tax claim and the mater was now awaiing a court ruling.

Gaudiosus Ishengoma, a lawyer at FB Atorneys which was represening ARMZ in the tax dispute, said the Russian

company had successfully challenged the government’s tax demands in court. He said the case was now before the Tax Appeals Tribunal of Tanzania.

Uranium One in 2011 revised upwards its mineral resource esimate for the Mkuju project to about 45 900 tonnes of uranium.

The project was granted a mining licence by the Tanzanian government in April.

The minister also said the government planned to conclude a deal to buy a 50% stake in the Tanzanian unit of London-listed Richland Resources by July 30.

The Aim-listed miner, which held the licence to the largest of four mining blocks in the world’s only tanzanite-producing area near Mount Kilimanjaro, returned to proitability in 2010 ater two years of losses.

Tanzania’s Mining Act of 2010 sipulated that Tanzanians retain at least 50% control or shareholding in all gemstone

mining operaions.TanzaniteOne said a State-run

mining company, STAMICO, was not expected to pay cash but instead use part of the future dividends from mining operaions to pay for the acquisiion.

“ The value of the 50% stake to be acquired by STAMICO shall be determined by a valuaion that would be determined by an independent valuer,” TanzaniteOne Chairman Ami Mpungwe told Reuters.

Muhongo said Tanzania’s mineral exports surged 16.3% t in 2012 to $2.3-billion, buoyed by higher gold prices. Gold accounted for 94% of that, he said.

The minister also said the government would enter into a joint venture with Australian irm Manjaro Resources to revive an old gold mine in northwestern Tanzania, which had tailings worth an esimated $70-million.

ABOVE:A Uranium mine in Tanzania. The country could become the world’s second-biggest producer of Uranium

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14 | A PR - J UN 2016

Minerals chamber warns mining, oil rms MINING is the most scruinised sector in the country, leaving no room for companies to cheat when paying government revenue.

hairman of Tanzania

CChamber of Mines and Minerals, Ambassador Ami Mpungwe, said several regulatory and

not-for-proit insituions are ightly following up aciviies of the mining sector.

“Anyone who says mining companies are cheaing in any form is lying and the American insituion’s report grossly misrepresents facts and imagines that there is no government here,” Ambassador Mpungwe said.

He however expressed concern that the recent Global Financial Integrity (GFI) report listed irregulariies relaing to oil markeing companies supplying fuel to mining companies.

“ We do not condone wrongdoing and any oil companies found cheaing will not work with our members,” Ambassador Mpungwe warned.

He further warned that coninued mistrust of the mining sector and mulinaional corporaions invesing in the industry, is huring further investments.

“ We need to tone down the rhetoric because it ’s huring more investments in this important sector,” he noted. Among insituions monitoring the mining sector include; Tanzania Minerals Audit Agency, Tanzania Extracive Sector Transparency Iniiaive and Tanzania Revenue Authority.

In its latest report, GFI said illicit lows and secreive pracices are robbing many developing naions, paricularly in Africa, of riches that could go towards development and stability.

The Washington-based NGO with a reputaion for analyzing large sums, believe developing countries lose about $424 billion each year when importers and exporters mislead governments about the value of goods and services, according to a new report.

The dishonesty - known as trade misinvoicing - accounts for nearly 80 per cent of all the money that developing countries lose each year through illegal means. Trade misinvoicing occurs when companies charge too much (over-invoicing) or too litle (under-invoicing) for imports or exports.

Depending on the laws in place, this allows companies to pay less in taxes or receive more generous government assistance. Though wide ranging in scope, GFI ingered Tanzania’s mining sector as a leading player in over-invoicing - which accounts for one slice of the esimated $1.87 billion the country loses each year.

Much of this comes from importers cooking the books to charge too much for goods, like machines or fuel, to take advantage of generous government concessions and help push cash out of the country.

“ Mining companies could be over-inlaing their import costs to shit capital out of Tanzania illicitly with the added kick-back of lower taxable income due to ariicially inlated inputs,” according to GFI.

The report esimates that the Tanzanian government misses out on about $248 million per year in tax revenue from mining companies as a result - a substanial amount for a country in need of funds for development. Weak governance and companies seeking to reduce their taxes are not the only players in this game.

GFI found that most of Tanzania’s misinvoiced trade is with Switzerland and Singapore - two reputed tax havens. Only six per cent of Tanzania’s imports come from Switzerland and Singapore, yet the micro States account for 67 per cent of Tanzania’s total import misinvoicing over ten years.

RIGHT:Tanzania is a growing mark et with on-going exciting discove ries, including 19 exploration blocks

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16 | A PR - J UN 2016

10bn - support extended to artisanal miners MORE than 10bn/- will be dished out to small scale miners in the country to support their operaions for the next inancial year and two third of the allocated amount would be given to arisanal miners in the Lake Zone based miners.

he boost will include

Tpurchase of two drilling rigs worth 1.8bn/- which will be allocated to small

scale miners in the Lake Zone and another in the South West Zone in Mbeya for exploraion of the new mine deposits.

The Commissioner for Minerals in the Ministry of Energy and Minerals, Eng. Paul Masanja, told reporters that local paricipaion in the mining exploraion among the licensed companies so far was encouraging.

“ The fact is that Tanzanians now own 70 per cent of the mining licences, while foreigners possess 25 per cent and the remaining ive per

cent is possessed in partnership between foreigners and locals,” he said.

He said the inancial boost and equipment donated to the small-scale miners target to boost them economically, adding that the government will increase more resources to keep supporing them.

Out of the 10bn/- allocated for the small-scale miners, according to Mr Masanja, 5.7bn/- has been donated by the World Bank as subsidy, while the government has set aside 2.5bn/- as loans to 18 groups of the small scale miners.

Mr Masanja said so far a total of 31 areas of 2,166 square kilometres have been

surveyed for small scale miners and that more areas will be surveyed and allocated to them.

Apart from creaing the mining areas for economic empowerment of the locals, the commissioner said the

government is determined to make sure regular conlicts between small-scale, middle and large miners reported in various areas in the country are solved.

However, he said there have been trends where small scale miners are not ready to sick to their allocated areas and keep on loitering from one place to another in search of new mining deposits, insising that habit should come to an end

“ It is due to that scenario that I have decided to conduct a special week long tour to the areas reported with regular and notorious conlicts in Geita, Kahama, Misungwi, Nzega and Tarime and I am determined to

solve them,” he said.He said the government in

collaboraion with largescale miners is inalising procedures that will lead to allocaion of special areas for small-scale miners in Nzega, Kahama and Igunga in Tabora Region for the sake of solving the emerging conlicts.

He directed the responsible mining o�cers to make sure mining licences are prepared and given to small scale miners as soon as they are ready, cauioning miners to remain paient during the licensing processes.

Giving staisics, Eng. Masanja said up to April, this year, a total of 39,958 licences were issued, 13 to large scale miners, 381 to medium scale miners and 36,094 to small-scale miners.

ABOVE:The Commissioner for Minerals in the Ministry of Energy and Minerals, Eng. Paul Masanja.

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18 | A PR - J UN 2016

100 non-starter mining licenses scrapped

THE government has revoked over 100 mining licences due to poor development and violaions of contracts. It intends to give them to small-scale miners, the House was told.

esponding, the deputy

Rminister said the ministry has inspected all licenses and found that over 100 were

non-performing as intended.“ We were compelled to annul

the licenses, which would be

given to small-scale miners who do not have enough prospecing area”, he said.

This was said by the Deputy Minister for Energy and Minerals, Mr Steven Masele, when responding to a quesion by Mr Ahmed Salum (Solwa-

CCM) who wanted to know when small-scale gold miners at Nyaligongo in Shinyanga Region will get a primary mining license.

In his supplementary quesion, the MP also wanted to know the reasons that led the government to fail to allocate enough land for small-scale miners.

The afected mining areas are those found in Arusha, Dar es Salaam, Dodoma, Morogoro, Tanga, Mbeya and Mwanza regions.

Mr Masele said the revoking exercise is coninuous and

will be carried countrywide. Currently, there are 3,950 licenses for large mining extracion and 35,717 for small extracion mining licences.

According to the ministry’s staisics, 70 per cent of the mining licences are owned by Tanzanians, 25 per cent are owned by foreigners while 5 per cent are owned in partnership between locals and the foreigners.

ABOVE:[place caption here]

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20 | A PR - J UN 2016

Rukwa coal projects investor secures environmental nodAfrican coal exploraion and development irm Edenville Energy has secured Environmental Impact Assessment (EIA) approval for mining at the Namwele and Mkomolo near Lake Rukwa in Tanzania.

he EIA report was

Tsubmited to the Naional Environment Management Council (NEMC) in December

2013, following ield studies and analysis in conjuncion with environmental consultant

Tansheq, the company said.“ We are excited about

receiving the approval of the EIA as it is a criical milestone in the development of the Rukwa Coal to Power Project,” Edenville Energy CEO Rufus Short remarked.

“ It is a key deliverable for

Edenville and provides the cornerstone from which to move forward with the coal mine development plan,” Short said.

The EIA approval allows the company to start mining, including compleion of a

feasibility study on the coal to power project. Subsequently, it will be able to convert the current prospecing licences and primary mining licences into full mining licences.

The EIA ceriicate is valid during the enire life cycle of the project based on the company’s

compliance with the speciic condiions.

“ We will coninue to assess this and other opions to achieve the best outcomes for our shareholders and the people of Tanzania and to ensure the project is developed in the most appropriate and viable manner,” Short added.

RIGHT:Rukwa, Tanzania

Tanzania crushing coal mining crusher equipments

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22 | A PR - J UN 2016

Mtwara cement plant to spur Tanzania’s economyTANZANIA’S economy is booming at a rapid rate, with the construcion industry and demand for essenials such as cement said to be one of the key drivers boosing its economy.The increased demand in cement is further fuelled by ongoing natural gas discoveries ofshore of the Lindi and Mtwara regions.

herefore, the

Tcommissioning of the Dangote Group’s new cement plant in the Mtwara Region

will help facilitate even further growth and help the country meet its local cement needs as well as provide export supplies.

The plant, which is set for compleion in 2015, will produce 3 million tonnes of cement per year, about half of Tanzania’s current producion and is one of only four faciliies like this across the world to be powered by a 75 Mega Wat (MW) coal-based power plant.

Aurecon has been appointed as the local engineering consultant on this greenields project and will be providing civil, structural, mechanical, electrical and plumbing (MEP) engineering design review as well as registraion and construcion supervision services.

Craig Wood, Aurecon’s Country Manager, Tanzania, says there have been a number of challenges inherent in working on such a large plant.

“ Because the design of the plant originated from China with external design review from America, Aurecon was required to ensure the inal design was an applicable and construcible soluion for Tanzania,”explains Wood.

“ To do so, Aurecon uilised experise from several of its local and global teams to ensure the build ability of the design as per local standards,” he said.

Processing and standardising informaion that was put

together by designers and reviewers spread across the globe was paricularly challenging. Advising our client on adaping their standards to relect and comply with Tanzanian standards has been a value-add to the facility,” said Anna Munyagi, Aurecon’s in-country coordinaion engineer.

Aurecon formed a consorium of local Architects and Quanity Surveys in Tanzania to ensure that the design, material selecion and standards were achievable within local condiions and constraints.

In addiion, Aurecon is also managing criical Tanzanian registraion and compliance maters, including obtaining approvals on local legislaion maters for the plant.

“ Mtwara is set to become a signiicant infrastructure hub to support the emerging large industries in Southern Tanzanian Northern Mozambique. The fact that Aurecon is also involved in the Mtwara Town Master plan provides us with a good plaform to engage the local

authoriies,” said Munyagi.Harun Mopendela, a civil

engineer with Aurecon in Tanzania stated that Aurecon was playing a criical oversight role throughout the inal design and construcion phases of the project and will coninue to maximise involvement from its local staf who have local knowledge and

experience.Aurecon provides

engineering, management and specialist technical services for

public and private sector clients globally.

With an o�ce network extending across 26 countries, Aurecon has been involved in projects in over 80 countries across Africa, Asia Paciic, the Middle East and the Americas

and employs around 7 500 people throughout 12 industry groups.

RIGHT:Cement plant in Mtawa currently under construction

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Stakeholders call for uranium mining policy

MINING stakeholders have called for a strong uranium mining policy in the face of plans to mine the resource soon.

resening a paper

Pon the regulatory environment on mining the resource in Dar es Salaam, a

representaive of Arimas Africa, Mr Godfrey Msangi, said that with expanding demand for energy, rising global oil prices and increased concern for climate change, there has been revived interest in uranium mining and exploraion in general.

He said that there is growing global interest in Africa’s uranium mines and potenial uranium deposits.

He said experience from high tonnage metal mining including exising gold mining in Tanzania, need to be leveraged to support capacity-building for both

operators and regulators of the industry.

“ Much of this interest has focused on Africa because of its relaively accessible uranium, lexible regulaions and low labour costs. Most uranium mining companies concentrate their eforts on the largest available uranium deposits,” he said.

He called for best pracices that might improve the governance of uranium mining and exploraion throughout the coninent. The call comes as scienists have called upon stakeholders including state organs to work harmoniously on a clear road map and policy that would lead to a strong uranium mining dispensaion.

A paper itled “ Overview

of regulatory framework for control of uranium mining in Tanzania,” by the Director General of Tanzania Atomic Energy Commission (TAEC), Prof Iddi Mkilaha, has said that the exising laws that afect mining and processing of uranium ore are: The Mining Act of 2010, The Atomic Energy Act No. 7 of 2003 and The Naional Environmental Act of 2004.

According to a paper on “ Economic Opportuniies and Challenges of Uranium Mining: The Tanzanian Perspecive”, Mr Yesaya Sungita of TAEC notes that mining industry is an instrumental part of the economy, with mining companies paying taxes, duies and royalies.

He said uranium mining is a new industry in Tanzania, whereby Mkuju River uranium mining is expected to start soon and other two at Manyoni and Bahi are in the pipeline.

He said the Mkuju River Project, (MRP) is world class

in tonnage processed, the top three mined tonnage uranium projects in the world located in the remote area of Namtumbo, Ruvuma, are two hours from the nearest airstrip. He said the project management has planned and executed exploraion, drilling and the construcion and operaion of a temporary camp-site.

A paper on “ Uranium and nuclear applicaions in technology and energy in Tanzania,” by Prof John Kondoro from the Dar es Salaam Insitute of Technology (DIT), said nuclear applicaions are becoming essenial in many areas of socio-economic development.

ABOVE:A Uranium mine in Tanzania.

A PR - J UN 2016 | 23

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African mines drive pump salesSouth Africa’s leading pump manufacturer and supplier, KSB Pumps and Valves (Pty) Ltd, is making signiicant inroads into African markets where exploding mining aciviies are feeding an ever-growing demand for luid handling soluions.

ith new

Woperaions constantly being undertaken in

remote locaions, mining irms are seeking reliable equipment which is fully supported by reputable companies. KSB in South Africa has an established presence on the coninent with a local manufacturing operaion that is able to design and build pumps that are suited to Africa’s harsh operaing condiions.

An established channel of trained dealers and branches throughout the coninent makes all the diference, and is ideally situated to efecively service and support the company’s products.

Complete luid transfer soluions

Speaking of the growing KSB installed-base throughout the coninent, KSB product manager for slurry pumps, Mohamed

Trabelsi, says the availability of a comprehensive range of slurry, process, and water pumps as well as valves has allowed mines to standardize on their products and enjoy a single-source of equipment, spares, and service.

The company has invested R-millions to meet growing demands with the formaion of a dedicated mining division, manufacturing plant expansions and increased stock holding to meet customer requirements. “ Mining in Africa is huge at the moment with vast potenial for growth paricularly in Central and West Africa. We are selling more equipment across our borders than ever before and have grown our product range to meet all slurry and water pumping requirements of our clients.

“ We also like to add value by sharing our slurry pumping knowledge with our customers.

We ofer a comprehensive choice of training courses

which teach proven methods to maximize performance and e�ciency using KSB slurry pumping products,” adds Mohamed.

These eforts have contributed towards a growing KSB pump populaion in Africa. Mines such as Vale in Mozambique, Geita Gold in Tanzania, Marampa in Sierra Leone and Bissa Mine in Burkina Faso, to name just a few, have shown their saisfacion with our US designed and locally manufactured slurry products,” explains Mohamed.

Recent projects

A new mill discharge pump at Bissa goldmine in Burkina Faso is good example of how African mines are making use

of world-leading technology to improve producion e�ciency. The energy e�cient extra-heavy discharge MDX pump is the irst new generaion pump of its type on the coninent and allows lower lifecycle costs as a result of reduced wear rate, its low-maintenance design, as well as improved performance and low-energy requirements.

In addiion, the mine uses KSB pumps throughout the rest of the process in order to standardize on parts, training and service requirements.

Geita Gold in Tanzania also makes use of a full KSB soluion. All pumps on the mine from slurry, water and waste, to chemical are supplied and serviced by KSB through its local dealership. Further South, Vale coal mine in Mozambique is especially interesing, as water for the mine is obtained from a dedicated borehole and pumped via a 22km long high pressure pipeline. This is done using the company’s large diameter UPA Borehole pumps and MTC Mulistage pumps which allow water to be brought to the mine for operaional purposes. Reliability and upime in this instance is criical, as without a constant supply, the

mine will be forced to stop operaing. In addiion, KSB ofers a comprehensive slurry package to the mine, which also includes 14 of the newly launched LCV slurry verical spindle pump.

African supplier

“ These are just some examples of mines making use of our products. It highlights the importance that mines place on being able to deal with an African manufacturer that has su�cient infrastructure to support their installed pumps and to provide training to mine technicians on the correct operaion and maintenance of their pumps.

“ The reason for our successful expansion in Africa is a direct result of our understanding of African condiions and the ability to meet requirements for world-class, ceriied products that are cost efecive and well supported. Despite the rural nature of many of our customers across Africa, we ensure that they are able to uphold high levels of producivity thanks to our reliable and well supported luid transfer soluions,” concludes Mohamed.

ABOVE:An LSA 84

pump being

prepared by

KSB Pumps and

Valves

Mohammed

Trabelsi, Product

Manager, KSB

Pumps and

Valves

24 | A PR - J UN 2016

FEATURE | PUMPS

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Hytec / Bosch Rexroth joint venture: A landmark in sub-Saharan hydraulics and automation

The 50 percent acquisiion of Hytec by Bosch Rexroth ofers greater expansion opportuniies into sub-Saharan Africa’s hydraulics and automaion markets. The joint venture came into efect on 1 October 2014, concluding the irst phase of agreements signed on 15 May 2014.

he Hytec / Bosch Rexroth merger

Trepresents the next step in a relaionship that began with Hytec’s accreditaion as the sole importer of Bosch Rexroth products into South Africa since the

1960s. With the region’s mining, oil and gas, power and general support industries ideniied as a key growth market, the joint venture enables each enity to leverage the core oferings of the other to provide superior automaion soluions for the region.

The closer a�liaion with the Bosch Rexroth brand will posiion the Hytec Group as the recognised service, repair and refurbishment OEM partner of Bosch Rexroth components, such as pumps, cylinders, motors, ilters and valves. “ This will enhance our service support capabiliies for the region’s industrial projects, and allow us to beter fulil the needs of our customers,” explains John Wingrove, CEO, Hytec Holdings.

The merger will also see the Bosch Rexroth brand represented alongside several complimentary product brands as part of a complete turnkey hydraulic and automaion soluion, fully supported by the Hytec Group. With an established operaional presence in the region, Hytec provides a strong local knowledge, proven technical capability and experience base for Bosch Rexroth into Africa.

“Another important pillar of our expansion will be our training capabiliies for the whole range of hydraulic, automaion and servicing skills,” explains Roland Keller, deputy CEO, Hytec Holdings. Hytec has a strong didacics engineering porfolio, with a fully-equipped training centre in Spartan, Johannesburg, and the company’s specialists are already delivering training courses in such countries as Nigeria, Kenya and Seychelles.

The Hytec Group/Bosch Rexroth joint venture senior management board will be comprised of John Wingrove (CEO), Roland Keller (Deputy CEO), John Dunmow (Group Finance Controller) and Andrew Castle (CFO). Having widely modelled itself to the German manufacturer’s quality and competency standards – with the Group running one of just 11 Bosch Rexroth-Ceriied Service Centres of Competence across the globe (the

single such facility in Africa) – the merger will not present any major organisaional changes within the Group.

In addiion to the Hytec Holdings head o�ce and HYSA, the centralised procurement and distribuion warehouse, six Hytec Group companies will form part of the new joint venture: Hytec / Afripower; Tectra Automaion; Hydraulic

and Automaion Warehouse (HAW); Hytec Engineering; Hytec Fluid Technology (HFT); and Hytec Services Africa (HSA), incorporaing the subsidiaries in Mozambique, Namibia, Zambia, Botswana and Ghana.

A PR - J UN 2016 | 25

FEATURE | PUMPS

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26 | A PR - J UN 2016

MineARC releases StormSAFE Cyclone Shelter, designed for extreme weather conditionsThe StormSAFE represents MineARC’s latest venture into above-ground safe refuge soluions for industry. In close collaboraion with Australian iron ore company, Atlas Iron, MineARC has developed two modular, fully portable cyclone shelters, built to withstand wind speeds in excess of 300km/hr.

or their operaion in

Fthe Northern Pilbara region, an area prone to extreme weather condiions and cyclones,

Atlas Iron recognised the advantage of providing on-site storm shelters at their largest Port Hedland faciliies.

MineARC Engineer, Daragh Quinn, said “ The custom StormSAFE chambers were speciically designed to comply with the Australian Building Code’s ‘Region D Raing’ for tropical cyclones, as well as the

Australian and New Zealand Standard AS/NZS1170.2, with a Building Code of Australia Importance Level of 4.”

“ Each chamber is large enough to house 72 people safely during extreme weather, eliminaing the requirement for Atlas Iron to send staf to Perth during an emergency, and allowing them to coninue producion and processing as normal all the way up to a ‘blue’ alert.”

The chambers were designed as four-piece modular units

that bolt together to provide approximately 105m2 of internal space, allowing easy disassembly and relocaion as required. Boasing a clever, compact design, the shelters each ofer bedding for up to 54 persons, ample seaing, a kitchenete and dual toilet faciliies.

“ The MineARC team, from iniial concept discussions through to handover on site, provided a professional service,” said Trevor Bea�e, Capital Works Manager at Atlas Iron. “ The design of the StormSAFE product evolved during construcion to meet the conlicing requirements of two separate end user locaions.”

“ The StormSAFE shelter met all the Technical Criteria and the internal it out provides total lexibility for seaing arrangements within the two center modules. A special thanks to MineARC for their determinaion in delivering the product to schedule and at a level that was promised at the

outset.”The StormSAFE’s unique

modular design means it can be customised and adapted to meet any client speciicaion, paricularly in regards to size, occupancy and internal features.

If you are interested in a storm shelter for your site, please contact MineARC, whose qualiied engineers can work closely with you to produce a soluion to best suit your needs.

For more informaion on this media release please contact Andrew

Kindon, Markeing Manager, on:

+61 (8) 9333 4966 or

[email protected]

ABOVE:StormSAFE Cyclone Shelter

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A PR - J UN 2016 | 27

PRODUCTS & SERVICES

New models brighten TowerLights appealLatest addiions will ill important niche in illuminaion market

ne of Pilot Crushtec

OInternaional’s most recent success stories has been the

introducion of the TowerLight range of semi-mobile and mobile lighing towers.

Sales have long passed the 100 mark and are likely to accelerate further with the introducion of two new models, the staic TF5.5 and the wheeled ML-5.

Based on comments from the ield, Pilot Crushtec Internaional director sales Graham Kleinhans is conident that these new addiions will add signiicant value to medium and smaller scale operaions, literally at the push of a buton.

“ The current range of TowerLight products has gained instant recogniion and acceptance from customers involved in large scale operaions. Their ability to work around the clock on civils and construcion projects or mine rehabilitaion has exerted a very posiive efect in both meeing and beaing deadlines and improving botom line performance.”

Kleinhans adds that the new addiions will ill an important

niche in the illuminaion market as it is now possible to efecively light smaller working areas at entry level prices.

The lightweight TF5.5 packs four 500W halogen loodlights mounted on a telescopic mast extendable to a height of 5.5 metres.

The securely mounted tripod unit has the ability to illuminate an area of 625m² (20 lux average) using either genset or mains power. Boasing an all up weight of only 64 kilograms, the easily transported TF5.5 is a classic ‘plug in and play product ’ that can be used when and where circumstances or possible emergencies dictate.

The larger generator powered TowerLight ML-5 features four 400W metal

halide lamps that are capable of lighing an area of up to 1,600m² (20 lux average).

Its fuel e�cient motor has the capacity to operate non-stop for 30 hours on a mere 20 litres of diesel so operaing costs are minimal in relaion to gains ofered in terms of producivity. Once it is located on site, the ML-5 is highly manoeuvrable as the integrated product complete with 5.5 meter lighing mast, is mounted on a wheeled chassis.

Kleinhans says the sheer number of enquiries received for TowerLight products has prompted Pilot Crushtec Internaional to install a demonstraion range of the enire leet at its Jet Park premises.

“ Every TowerLight customer

has reported major gains in operaing e�ciencies thanks to increases in output and savings in downime. In the past, many operators preferred not to work at night as major breakdowns or safety incidents occurred in the dark. TowerLight systems allow for ease of constant supervision irrespecive of the ime of day or prevailing weather condiions.

Speciicaions at a glance:

TF5.5• 5.5 metre tower height• Four x 500W halogen

loodlights• Telescopic mast with

manual winch and autobraking system

• Ceriied stable in winds of up to 80kph

• Adjustable tripod to aid stability

• Capable of illuminaing an area of up to 625m²

ML-5• 5.5 metre tower height • Four x 400 metal halide

loodlights• Telescopic mast with

manual winch and auto-braking system

• Yanmar diesel engine delivering 5,8HP @ 3,000rpm

• 20 litre fuel tank• Ceriied stable in winds

of up to 80kph• Wheeled chassis with

wide angle steering and safety brake

Pilot Crushtec Internaional is

South Africa’s leading supplier of mobile and semi-mobile crushing, screening, washing and materials handling equipment and has for more than two decades set industry benchmarks for product, technical and service excellence.

BELOW:TowerLight ML-5 folded and extended

BELOW RIGHT: TowerLight TF5.5 folded and extended

TowerLight ML-5 folded and extended

TowerLight TF5.5 folded and extended

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28 | A PR - J UN 2016

RustPrufe: A must-buy anti-rust coating The easy-to-apply and environmentally-friendly RustPrufe corrosion protecion soluion for non-porous surfaces eliminates the need to repair damage to steel surfaces occurring during extended storage periods or shipping and handling.

he soluion is ideal

Tfor industrial and mining applicaions, and is available through wear control

specialist,Filter Focus. COO Craig FitzGerald notes that RustPrufe is a painted or sprayed-on acrylic polymer emulsion that dries to form a seamless, skin-ight weather and UV-resistant protecive barrier.

“ Items such as valves, gears, shats, and motors are oten subjected to harsh climaic condiions, and RustPrufe is the most convenient, cost-efecive and user-friendly opion

to ensure that these costly components are not damaged in transit,” he explains.

FitzGerald points out that the components do not have to be sanded down or rust treated. “ Upon applicaion, the product is peeled of by hand to reveal a clean and rust-free surface. As a result, cost savings during rouine maintenance and repair shutdowns are tremendous.”

Unlike tradiional tape, wax and oil coaings that must be scraped of and cleaned with solvents, RustPrufe does not leave behind a residue. It is also highly-durableand,should

tears or perforaions appear, they can be closed by applying the coaing to the exposed area with a paintbrush.

Onsite components are oten exposed to aggressive environments and require coninuous eforts to maintain. FitzGerald highlights the fact that RustPrufe can also be applied in these applicaions as a permanent ani-corrosion coaing on operaional equipment.

“ RustPrufe is also acid-resistant, and has been successfully used to protect electric motors in acid plants on numerous South African mines. The soluion is also uilised in the feriliser industry, where it is applied on earthmoving

machinery to protect it from nitrates that eat away at the metal,” he adds.

RustPrufe is also environmentally-friendly and with zero toxicity letover,the coaing can be disposed of safely in landills. “ With no harmful chemicals, PPE is not required and an absence of harmful vapours and fumes means that the soluion can be applied in conined spaces too,” FitzGerald concludes.

Filter Focus SA (Pty) Ltd was formed in January 2002 with the aim of establishing the concept of combinaion iltraion and eliminaing contaminaion related wear and failures in heavy industrial equipment.

BELOW LEFT:Filter Focus COO Craig FitzGerald.

Middle & Right: Rust-proofed equipment.

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30 | A PR - J UN 2016

Graphite prospecting in northern Mozambique attracts another Australian company

Australian mining company Mozambi Resources Ltd intends to acquire two licenses for graphite and vanadium exploraion in northern Mozambique, the company said Tuesday, adding that it looked forward to concluding negoiaions with the Mozambican authoriies.

he two licenses (6142

Tand 6140) are in the Montepuez district, in the province of Cabo Delgado, in the

vicinity of other blocks already under concession, where large graphite and vanadium reserves have already been ideniied.

With paricular interest in the 6142 block, due to its proximity to the Monte Nicanda deposits operated by Triton Minerals, and Balama Central, operated by Syrah Resources, Mozambi Resources is opimisic about the results of the exploraion aciviies it plans to start in the

short term.“ We are very excited about

the potenial that this area has, as an emerging graphite and vanadium basin,” said the company’s chief execuive, Alan Armstrong, adding he was “ saisied” with the “ rapid development of negoiaions” with the Mozambican authoriies.

Prospecing results so far from Triton Minerals in Nicanda indicate the region may contain the world’s largest combined deposit of graphite and vanadium with 1.457 billion tons at an average

concentraion of 10.7 percent of graphiic carbon and 3.93 million tons at an average concentraion of 0.27 percent of vanadium pentoxide.

The agreement that Mozambi Resources is negoiaing with the Mozambican Ministry of Natural Resources is subject to payment of US$50,000 for the opion to purchase, in addiion to another potenial payment of a similar amount, as well as issuing 15 million shares in the company, if a put opion for sale of the licenses is exercised.

The mining company, which expects to close the deal with the Mozambican authoriies by March, intends to proceed with ield work as soon as it receives the two licenses, and this work should include trenching, collecing rock samples, mapping and ground geophysics.

If the results of the survey indicate the existence of a deposit with 300 million tons of graphite at a concentraion

greater than 5 percent (based on reporing standards of the Australian Code for disclosure of operaing income), Mozambi Resources, which is listed on the Australian Stock Exchange, undertakes to issue 15 million shares to the Mozambican state.

Should the deposit contain more than 600 million tons, in addiion to the issue of the shares, the company will have to pay US$250,000 to the country, according to the press release about the deal.

Formerly called Mozambi Coal, Mozambi Resources has interests in two coal mining concessions in Tete province, in central Mozambique, speciically the 3245L license (near the city of Tete) and 3246L license (over 50 kilometres from same city).

It has a majority stake of 70 percent in both concessions, and its consorium partner is Mozambique’s Camal & Companhia Lda.

ABOVE:Graphite loads in transit

INTERNATIONAL NEWS

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32 | A PR - J UN 2016

Areva remains committed to Namibia despite depressed Uranium Prices

Despite a weak uranium oxide price and the percepion that the Trekkopje mine in Erongo has closed down, Areva Resources Namibia remains commited to eventually being a major contributor to the naional economy and social enhancement.

his was the message

Tof the company’s managing director Hilifa Mbako at the launch of the

2013/2014 stakeholders’ report in Swakopmund recently.

The report highlights Areva’s involvement in local, regional and naional community programmes to the tune of N$2 million, despite the fact that it is spending N$100 million annually on its care and maintenance programme for Trekkopje mine since 2013 - with no returns on uranium producion.

“ Trekkopje mine is merely in a holding phase with every intenion to start up as soon as the economic condiions make the project proitable again,” Mbako stated. The care and maintenance involves a team of

about 100 people ensuring that assets are protected and the mine’s infrastructure is kept in working condiion so that it can be commissioned without delay.

Since the 2011 Fukushima disaster in Japan, uranium prices have plummeted to as low as US$28 per pound, although lately it has steadily increased to US$39,50 per pound. Trekkopje’s inancial manager Tommie Gouws said the company hopes a steady growth over the next two to three years will bring the price to a more conducive US$70 per pound, which will prompt Areva to start its N$10 billion operaion.

“ Everyone is posiive that the price will increase in the medium term. This mining is linked to energy demand globally and the world knows

there will be a need for nuclear energy,” Gouws said.

Mbako said the downturn ater Fukushima was an “emoional response” from nuclear countries to halt nuclear fuel programmes, which was the biggest catalyst to decrease demand.

“ But the emoions have subsided and nuclear energy will take over from coal,” said Mbako.

Asked how long Trekkopje intends to go on with care and maintenance before realising that it could be a ‘dead weight ’, Gouws replied: “ It ’s di�cult to draw the line and decide ill here and no further. The point is to have the mine ready to restart as quickly as possible as soon as condiions are right. We are anicipaing another two or three years before this can happen.”

Mbako explained that most of the exising mines had gone into long-term contracts before the downturn happened and these contracts had kept them in business.

“ Most of those contracts come to an end this year and then these mines will have

to decide whether they can coninue or not,” he said. “ We made a commitment. It is maybe the easiest opion to just quit and save money but there’s more at stake here and we are opimisic.”

Besides its community involvement, one of two highlights during the last inancial year is the compleion of the second phase of metallurgical test work with “ very promising results”.

“ The care and maintenance phase is giving us an opportunity to thoroughly research the alkaline heap leach process and make improvements to the uranium recovery technology that will be employed when the mine goes into full scale producion,” according to Mbako.

The other highlight is the construcion of a new access road from Arandis to the mine, which is said to shorten the employees’ travel ime to work by one hour each day.

ABOVE:Graphite loads in transit

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XPS is a licensed metallurgical consulting, technology and test services business.

We offer industry leading expertise covering:• Quantitative Mineralogy (QEMSCAN and Microprobe)• Metallurgical Flowsheet Development• Operational Support• Process Monitoring and Control Solutions (Mining and Processing)• Asset Integrity Managementfor most commodities including: gold, nickel, copper, zinc, PGEs, rare earth and indus-trial minerals.

Decisive...Dynamic...Different...

XPS Consulting & Testwork Services6 Edison Road, Falconbridge, Ontaio, Canada P0M 1S0

t: +1 705 699 3400e: [email protected]: www. xps.ca

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Tanzanian gemstone miner blasts govt for inaction against illegal mining

recent analysis of

A samples collected in Mozambique by Australia’s Triton Minerals

concluded that the graphite concentrate can be used to manufacture bateries, specialty products, steel and refractories, lubricants for the automoive and electrical sector and other products.

According to the Economist Intelligence Unit (EIU), the latest developments in graphite mining in Mozambique show the country “ has the potenial to emerge as a major global producer” of this raw material, “ thanks to abundant reserves and low mining costs.”

These factors make it possible to “ take advantage of the growing demand for this mineral,” the EIU added.

The indings aroused the interest of several Chinese companies, including China

Aluminium Internaional Engineering Corp Ltd (Chalieco), which recently sealed a deal to buy a third of the producion of Syrah Resources.

The agreement provides that Chalieco buy at least 80 tons per year over three years from the Australian company, which can now more easily secure funding to develop the mine.

Triton Minerals recently signed a contract with Yichang Xincheng Graphite Co., Ltd. (YXGC) for the supply of graphite extracted in Mozambique, with a duraion of 20 years and a minimum value of US$2 billion.

Stressing that YXGC is currently “ China’s largest private producer of high value graphite products,” the company’s chairman, Yue Bin, noted the quality of graphite extracted in Mozambique, which is higher than iniially expected, and that the agreement will

facilitate procurement of this raw material at “ compeiive prices” and “ indirectly help the economic growth of Mozambique.”

Headquartered in the region of Yichang, Hubei Province, YXGC develops products for various industries such as oil, chemical, metallurgy, machinery, automoive, aerospace, among others, acing in the Chinese market and in more than 20 countries.

In Mozambique, Triton Minerals owns the rights to exploraion of three graphite and vanadium concessions in the province of Cabo Delgado, in the north, and the Balama Norte concession, where monte Nicanda is located, is a priority area for the launch of operaing aciviies.

The EIU esimates that Nicanda may contain the world’s largest graphite reserves and Triton “ is assessing its opions

for the development of these deposits alone or in partnership.

If the four graphite producion projects announced since February are all launched, Mozambique will become a leading global producer of graphite.

Although the development of the coal industry is on a larger scale, says the EIU, graphite “ may in the long run contribute to a more diversiied mining sector, while becoming a signiicant generator of government revenues and exports.”

The developments in mining and, in paricular, investment in the mining sector, support projecions of “ robust economic growth” between 2015 and 2019, at an annual average of 7.4 percent.

TOP: Mozambican

graphite

has diverse

industrial

uses

34 | A PR - J UN 2016

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WWW.TA NZA NIA NMININGNEWS.COM

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36 | A PR - J UN 2016

Mozambique’s EITI report shows that state revenues are in line with company paymentsThe discrepancy between the values declared by mining operators and the amounts received by the Mozambican State currently stands at 0.2 percent, according to the ith report under the Extracive Industry Transparency Iniiaive (EITI).

he rst report

Tproduced under the EITI had a discrepancy of 54 percent between the values

declared by the companies and accounted for by the state, according to the ith report cited by daily newspaper Noícias.

The report now presented in Maputo refers to the 2012 inancial year and covers around 56 companies with a value of government revenue

of around 11 billion meicais and a discrepancy of 0.2 percent, far below the 3 percent set as the maximum recommended igure.

Alfredo Name, Permanent Secretary of the Ministry of Mining Resources and Energy, which presented the document, said the diversity of the informaion contained in the report is consistent with the new standards of the EITI.

The Naional EITI coordinator, Custodio

Nguetana, referred to the advantages of implemening the iniiaive considering that it ensures that payments of companies and government receipts are disclosed on a regular basis and in the public domain.

Informaion provided during the meeing showed that Mozambique’s ith EITI report includes a comprehensive contextual analysis and reconciliaion between state receipts and payments

made by extracive industry companies in 2012, in line with EITI requirements and the recommendaions of its Steering Commitee.

RIGHT:Coal yard in Mozambique

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WWW.TA NZA NIA NMININGNEWS.COM A PR - J UN 2015 | 37

SUPERIOR TECHNOLOGY. SUPERIOR MINING SOLUTIONS.

NuWater provides a range of products, services and financing solutions to reclaim or treat almost any quantity and quality of water.

Innovative 16" reverse osmosis technology makes NuWater plants more compact and efficient, with lower operating and maintenance costs. Being modular and mobile, our plants are also rapidly deployable and highly scalable, providing ultimate flexibility in a rapidly changing world.

Challenge us to clean your water.

Seawater Surface Water Groundwater

People Mining Industry Oil & Gas

Wastewater

Reclamation

Clean WaterWaste Water

NUWATER MODULAR TREATMENT PLANT

[email protected] +27 21 531 0641 www .nuwaterglobal.com

FROM TOP:

NuWater’s ‘Modular &

Mobile’ plant design for

wastewater treatment

and desalination.

Aerial view of 20 MLD

mine wastewater

reclamation plant

at Anglo American’s

New Vaal Coliery.

One of two NuWater

rapidly deployable

modular plants at

Gold Fields, Ghana.

Page 40: APRIL - JUNE 2016 THE PRIME SOURCE OF EAST …eastafricanminingnews.com/wp-content/uploads/2017/03/eam... · 2017-03-31 · tawandash@gmail.com Physical Address: Old Bagamoyo Road,

Sulzer Pumps – Bringing Excellence to Mining

Sulzer Pumps offer customers com-plete pumping systems solutions with leading-edge technologies backed by our long-standing history of superior engineering and innovation.

Our dedicated team of specialists work closely with you to develop the right solutions and services to match your mining needs.

With 90 years of experience in South Africa, we have a strategically located manufacturing facility as well as sales and service facilities within the region to provide you with the knowledge and expertise of our business.

Find out how we can develop the ideal pumping solution for you.

Sulzer PumpsSulzer Zambia Ltd.Stand 603, Station Road,Light Industrial Area,Chingola, ZambiaPhone +26 021 231 2442 / 1740Email [email protected]

The Heart of Your Process