Tanzania, three Australian mining companies sign over $600m deals
Tanzania has signed over 600m US dollar deals with three Australian mining companies.
President Samia Suluhu Hassan has witnessed the signing of the deals at a function held at Chamwino State House in Dodoma on Monday.
The global mineral companies involved in the deals are Evolution Energy Minerals Limited, EcoGraf Limited and Peak Rare Earth Limited all from Perth.
The three types of contracts entered between the East African State and the three companies are framework agreement, shareholding agreements and memorandum and articles of association agreements.
The Government signed an agreement with EcoGraf Limited for the development and operation of the Epanko Graphite Project in Ulanga, Morogoro with the initial investment worth 127.7 million USD (about 299.5bn/-) and Peak Rare Earths Limited for the Ngualla Rare Earth Project with the initial investment of USD 439m (about 1.29tr/-)
Tazania also signed the contract with Evolution Energy Minerals Limited for the Chilalo Graphite Project in Ruangwa District,Lindi region with the initial investment worth 100Million USD (about 233 bn/-) 1.6tr/-
According to the chairman of special team on SPGNT dialogue, Prof Palamagamba Kabudi the ‘Framework agreement and shareholder agreements’ confirm the government’s 16 per cent non-diluted free carried interest shareholding as one of the contracts contents.
Also in the contract’s content, the government will get more shares when there is a discovery of other minerals in the areas of projects or the government investment in the construction of infrastructures in the areas.
“We have put in place a procedure to ensure that Tanzanians participate in the highest leadership positions to the joint venture company as well as the procedures for their selection including Chief Executive Officer, (CEO), Chief Operating Officer (COO), Chief Finance Officer (CFO), Chief Human Resource Officer (CHRO) and Chief Procurement Officer (CPO),” he said.
Elaborating further, he said that the government will as well participate in the operation of the projects through board decisions.
