Stamico bounces back

State Mining Corporation’s (Stamico) success has received an accolade from the government thanks to major reforms which started to pay off.

The state mining firm last year paid a dividend of 2.2bn/- when marking its 50 years of its being after making a good profit—which the press statement issued over the weekend did not mention.

Instead, the statement showed that the SOE generated revenue increased from 1.36bn/- in 2018/2019 to 48.9bn/- in 2021/2022.

The Treasury Registrar, Nehemiah Mchechu, said the reform successfully implemented made significant changes that enabled Stamico to become profitable.

“As a result of these achievements, the organisation, which was once considered defunct, was confirmed by Members of Parliament in 2019 that it could no longer be dissolved due to its satisfactory performance,” Mr Mchechu said during the meeting with chairperson and heads of State Owned Enterprises (SOEs) last week.

The meeting centred on turning around the modi operandi of SOEs and making them self-sufficient, sustainable, and contributing significantly after being one of the entities that generate significant profits for the government.

The TR said the goal of government is to see public entities becoming less dependent on the government subsidy to reduce the taxpayers’ burden of running them.

Nevertheless, Stamico last month signed a historic two-year contract of 55.2bn/- with Geita Gold Mining (GGM) for rock drilling and blasting.

The contract came after the state mining firm successfully implemented an initial contract of 5.6bn/- signed in July 2020.

As a result of these developments, the Minister of Mines, Dr Dotto Biteko, said that these contracts are the fruits of the government’s investment in Stamico which is now headed by Dr Venance Mwasse.

The new Chief Executive Officer also developed an eco-friendly alternative cooking fuel called ‘Rafiki Briquettes.’

Stamico was re-established through the Public Corporations (Establishment) (Amendment) Order in 2015 that aimed at increasing the contribution of the mineral sector to the national economy and creating employment. However, initially, it was established in 1972.

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