The Launch of the TEITI 11th Report for the Fiscal Year 2018/2019 and the Handed over of a Mining Lisence (SML) for Kabanga Project to Tembo Nickel Co.Ltd

Posted on: October 27th, 2021

The Launch of the TEITI 11^th Report for the Fiscal year 2018/2019 and the handed over of a Mining Licence for Kabanga Project to Tembo Nickel Co.Ltd

This comes after the Ministry of Minerals on the 27 October, 2021 handed over a Mining Licence for Kabanga Project to Tembo Nickel Co. Ltd (TNCL) which expects to invest a total of $412 million, according to submitted feasibility study.

The very same event was to launch the TEITI 11^th Report for the Fiscal year 2018/2019, this event was graced by Speaker of the Parliament, Hon. Job Y. Ndugai. The overall event was held in Dodoma.

Minerals minister Dr. Dotto Biteko said the feasibility report showed total deposits of 58 million tonnes of nickel. “The mining operations are expected to be conducted by underground mining method whereby production is expected to reach an average of 600,000 tonnes per annum in the first five years and later increase to 2.2 million tonnes per annum,” he said.

Based on that production rate, the life of the mine is estimated to be 33 years. The concentrates produced from the mine will be transported to refinery which is to be built in Kahama District.

Dr. Dotto Biteko said the annual production and exports of all the nickel would be worth $854.1 million at current prices for the minerals. He also said refined nickel production is projected to average 33,107 tonnes a year, the rough equivalent of $666.5 million in export earnings at current prices; 4,698 tonnes of copper (equivalent to $47.2 million in export earnings at current prices) and 2,509 tonnes of cobalt (equivalent to $140.3 million annually in export earnings at current prices.

According to Minister Biteko, the project is expected to provide jobs to 978 people as per the Mining Act (Cap 123) and the Mining (Local Content) Regulations, 2018. He noted that the revenues will increase every five years. Similarly, the presence of a nickel refinery in Kahama District will add more than 100 jobs.

Also Tembo Nickel Co. Ltd (TNCL) director Chris Showalter said issuance of Kabanga Special Mining Licence (SML) was a sure sign of confidence which the government has in the project. “We acknowledge their support and that of the shareholders as we move the project forward. And with the SML in hand the project can now accelerate and scale-up,” he said.

The ministry’s permanent secretary, Leonard Masanja said the 2018/2019 TEITI report shows that a total of Tsh 626.14 billion had been received by the government from the extractives sector.

Minister Biteko commended the Tanzania negotiation team in the Tembo Nickelled by Minister for Constitution and Legal Affairs, Prof Palamagamba Kabudi that enabled the government to have 51percent share and 49 percent for the investor.

Hon. Biteko said the Tanzania Extractive Industries Transparency Initiatives (TEITI) reports have been of great success, as it gives the government a chance to know the contribution of the extractive industry in the national economy. He said before the establishment of the TEITI there were gaps, but with the prepared reports, there is now transparency that is necessitating compiling another report on the contribution of the small scale miners after realizing that gold mining contribution has risen.

Gracing the event, Speaker Ndugai insisted on discipline, patriotism and commitment among public servants, who will be part of the mining projects, so that the government gets its targeted share. He said the Parliament will keep a close eye and monitor the project implementation, as well according the Parliamentary Standing Committee on Mining and Energy needed support for checks and balance of its operations.

Elaborating, Speaker Ndugai said the mining industry has attained major transformation in the recent years, where the Parliament is fully involved, thus making it easier to have in place laws and contracts.

On his part, Chairman of the Parliamentary Committee for Mining and Energy, Mr Danstan Kitandula said the TEITI reports are key working tools, which they will rely on. He said transparency report have been showing how the mining sector has been advancing, as it shows growth of the extractive industry.

Mr Kitandula said they have been pleased with issuance of the special mining licence, and called for the timely implementation and completion of the project take off.

Permanent Secretary in the Ministry of Minerals, Prof. Simon Msanjila said they have printed 11 reports and the government has received 3 billion US dollars from the extractive industry. “The government is ready to issue a Special Mining Licence (SML) to Tembo Nickel. I have directed the Tembo Nickel Chief Executive Officer (CEO) to submit the work plan within three days,” he said.

On his part. Ngara Legislator, Mr Ndayisaba Luholo appealed to the residents to grab the opportunity by doubling production of cash and food crops, which would be high demand when the project is in full swing.

The signing of the long awaited Nickel Mining agreement between LZ Nickel Limited and the Tanzanian government on January 19^th, this year, was witnessed by the late President John Pombe Magufuli, who assured investors that Tanzania is politically stable and invited them to exploit the abundant resources available in the country.