In Summary

Deputy Minister for Minerals Dotto Biteko gave a seven-day ultimatum for the developers to present to the government the financial details of the purchase of the mine, saying their differences were delaying the project implementation and occasioning loss of revenue to the government.

Dar es Salaam. The saga, involving gold mining project at Magambazi area, Nyasa Village in Handeni District, has taken a new twist, with the project developers saying they were still within the time frame.

Deputy Minister for Minerals Dotto Biteko gave a seven-day ultimatum for the developers to present to the government the financial details of the purchase of the mine, saying their differences were delaying the project implementation and occasioning loss of revenue to the government.

“I would rather see the licenses being revoked. They are dilly-dallying the implementation of the project and causing a loss to the government,” Mr Biteko said last week.

But in a letter, addressed to the Tanga Regional Commissioner’s Office, a copy of which was sent to the Ministry of Minerals, the developer, CANACO Ltd, says there were some communication mishaps involving the project, resulting into misunderstandings among leaders at various levels.

“We are within the time frame of the Definitive Agreement as amended in January 2018,” the letter reads, insisting that there were some wrong information about the project out there.

Also according to the sales agreement between the parties CANACO Ltd and Tanzania Goldfields Ltd) gold mining production shall start in the year 2020 and not in 2017 as claimed.

The Nyasa Village chairman, Mr Semeni Mtafi Said was quoted in the media yesterday as saying that Gold mining project in his area started production late because it had to adhere to environmental assessment regulations, insisting that the government should find an amicable solution with the investor for the general good of the project.

He said geological studies in the village started in 2008 and 2009 and gold mining started in 2010 within Magambazi area.

Mr Mtafi said the geological survey research took long time to be completed, hence the delay to start gold mining so production only started last year 2017.