Samia throws weight behind STAMICO

PRESIDENT Samia Suluhu Hassan has pledged to strengthen the State Mining Corporation (STAMICO) and address challenges facing it in order to increase efficiency in its operations.

The Head of State expressed her commitment through her message which was read by Vice-President Dr Philip Mpango when he graced the commemorations of the 50th anniversary of the corporation held on Friday in Dodoma Capital.

“Congratulations STAMICO for marking the 50th anniversary, the government will strengthen the corporation and work on the challenges of public procurement procedures and shortage of workers,” President Samia said in her message.

Eelier, STAMICO   Acting  Director  General  Dr Venance Mwase  said that public procurement procedures  are not friendly  to  the corporation, saying its review will help  the company to operate efficiently and earn more profit, enabling it to pay more dividend to the government.

The DG also said that the corporation also faces shortage of workers, calling upon the government to employ more workers following an increase in the number of projects to increase efficiency and strengthen their supervision.

On his part, Dr Mpango commended STAMICO for major reforms which resulted to increased innovation, strengthening production and coming up with strategies of operating profitably which reduced direct dependence on the government.

He said the government has continued to take measures to attain its intention of promoting growth of the mining sector so that it   provides employment to more Tanzanians and contributes more to the country’s economic growth and income.

The VP noted that in 2019 before the Covid -19 pandemic, the mining sector set a record of contributing 17.7 per cent to the national income   when compared to other sectors.

He said despite the effects of Covid-19 pandemic, the sector also remained strong whereby in 2021 it grew by 9.6 per cent. “The contribution of mining sector in the national income continues to grow to 7.2 per cent in 2021 from 6.7 per cent recorded in 2020 and 4.3 per cent in 2015.”

As part of commemoration of its anniversary STAMICO also handed over a dummy check worth 2.2bn/- to the treasury as dividend to the government.

The cheque was presented to the Treasury Registrar by STAMICO Board Chairman retired Major General Michael Isamuhyo.

Parliamentary Public Accounts Committee Chairman Jerry Silaa said that STAMICO is one of the 33 public organisations   in which the government has more than 50 per cent shares. He said there are also 36 entities in which the government own less than 50 per cent of shares.

He said in the financial year which ended on June 31 this year, all the organisations paid 852bn/- in dividend which is equivalent to 109 per cent of the target of 779bn/-.

“The contribution of these public organisations to the government consolidated fund   in the previous financial year was 639bn/-   this is a huge contribution,” he said.

He further said that since 2019 STAMICO has been performing well, noting that since the new DG was appointed the revenue increased from 1.36bn/- in 2018/2019 to 48.9bn/- in 2021/2022.

“The aim is to collect 70.04bn/- in the current fiscal year … the corporation was depending on the government in financing Other Charges (OC) vote by 89 per cent but to date it is independent by 100 per cent,” he said.

He noted that in the previous fiscal year STAMICO paid 1.2bn/- to the government but today it has paid 2.2bn/- and it plans to pay 5bn/- as dividend.

Mr Silaa further said that the corporation has embarked on large scale coal mining with a contract of 60,000 tonnes and it expects to increase to 100,000 tonnes per month which will generate 4.1bn/-.

Related Articles

Leave a Reply

Your email address will not be published. Required fields are marked *

Back to top button