ABUNDANT natural resources, coupled with conducive business climate, has continued to attract potential investors to Tanzania after Australian firm, Adavale Resources Company, embarked on Nickel exploration in Kagera region.
Adavale Resources (T) Ltd Relationship Manager, Mr Beatus Mtemekele, informed the ‘Daily News’ in an interview that the company was conducting exploration on Nickel in four districts of Biharamulo, Muleba, Karagwe and Ngara.
“Geologists from Adavale Resources Company have started the exploration work in the four districts of Biharamulo, Muleba, Karagwe and Ngara to determine the amount of nickel deposits before we embark on drilling.
“We appeal for cooperation from authorities and ‘wananchi’ during the exploration stage. We have also taken into account the environmental and health aspects,” he said.
Ngara District Commissioner Col Michael Mtenjele, on the other hand, appealed to Adavale Resources and other companies to ensure that they conduct their business in a transparent manner and cooperate with authorities.
Mr Mtenjele was speaking during an awareness seminar conducted by Adavale Resources Company Ltd involving members of the Ngara District Defence and Security Committee (DDSC) and several councilors.
“Some companies have been reported to be conducting mining activities in several villages without informing the district authorities. This is a risky situation as ‘wananchi’ were ignorant of their presence," he said.
The District Commissioner listed some of the challenges facing the mining sector to include lack of reliable markets, poor working condition by small-scale miners and also called upon the Tanzania Mining Commission (TMC), to ensure that they visit the respective areas with mineral deposits before issuing the mining licences.
Kagera Regional Mines Development Officer (RMDO), Engineer Lucas Mlekwa informed the District Defence and Security Committee that Adavale Resources Company was in possession of a Prospecting Licence and would be conducting exploration on Nickel in Ngara, Biharamulo, Muleba and Karagwe Districts.
Ngara District is rich with mineral resources including Nickel, Tungsten, Tin, Manganese and Copper.
According to Mr Mlekwa, about 44 small-scale mining licences had to-date been issued to small-scale miners in the district including Gold (2), Tin (4), Building Materials (15), Woframite (2), Tantalite (3), Nickel (1), Manganese (11) and Copper (1),” he said.
Also, at least eight Prospecting Licences had already been issued for Nickel and one licence for Tantalite, he said.
Earlier this year, the late President John Magufuli assured investors that Tanzania is politically stable and invited them to exploit the abundant resources available in the country.
He made the remarks after witnessing the signing of the long awaited Kabanga Nickel mining agreement between LZ Nickel Limited and the Tanzania government.
The international nickel mining contract was held in Bukoba Municipal Council.
The direct negotiation team that led to the signing of the agreement was headed by Prof Palamagamba Kabudi.
"Tanzania is the right place for investors. It is a resource-rich country with water, land and abundant minerals including graphite, helium, cobalt, petroleum, gold, uranium and nickel just to mention a few," he said.
LZ Nickel Limited is a United Kingdom (UK) mining company with investment capital in Tanzania amounting 5.4 billion US dollars, offering employment to 227,000 Tanzanians, while the Republic of China had investments amounting 5 billion US dollars, offering employment to 315,000 Tanzanians.
LZ Nickel will also construct a nickel smelter in Kahama District, Shinyanga region.
The mining sector made significant progress with production increasing from USD 168bn during 2015 – USD 528bn during 2020.