Tanzania to launch biggest gold mine next week

Dar es Salaam- Tanzania (PANA) -- Tanzania will next Wednesday inaugurate its largest gold mine, the chairman of the Tanzania Chamber of Mines, Samuel Lwakatare said.
Lwakatare told PANA Wednesday that the Bulyanhulu Gold Mine, Tanzania's third gold mine, will have a production capacity of 400,000 ounces per year.
He said that Kahama Mining Corporation under Barrick Corporation of Canada would run the mine.
"With the inauguration of its third gold mine, Tanzania will have a projected capacity of over one million ounces," Lwakatare added.
"This is an exciting moment for our country.
We will be the third gold producer in the continent, after South Africa and Ghana".
With two gold mines in operation, Tanzania's revenue generated from the precious mineral has skyrocketed from 3.
33 million US dollars in 1998 to 184.
86 million US dollars in 2000, according to figures from the ministry of Energy and Minerals.
The Bulyanhulu Mine, sitting on gold reserves of 10 million ounces in the cotton-rich Shinyanga province, will operate alongside Australian Resolute's Golden Pride in Nzega district of Tabora region, and Geita Gold Mine surrounding Lake Victoria.
Currently, Golden Pride Mine, inaugurated in 1998, produces 202,000 ounces a year, while Geita Gold Mine, a joint venture between Ghana's Ashanti Goldfields and South Africa's Anglogold, produces 500,000 ounces a year.
These developments have been taking place due to the on- going reforms in the sector, which have made the country an important destination for investment, Lwakatare explained.
Since unveiling its national investment policy in 1990, Tanzania has issued more than 160 prospecting licences to potential investors in the sector that makes for more than 11 percent of Tanzania's Gross Domestic Product.

12 july 2001 13:29:00




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