Geita Gold Mining Limited (GGML) and the State Mining Corporation (STAMICO) have inked a lucrative two-year agreement worth Tsh55.2 billion, which entails STAMICO carrying out drilling operations at GGML's mining site. STAMICO, a government-owned mining corporation, is currently engaged in three other joint venture projects, namely Buckreef Gold Company Ltd, Mwanza Precious Metals Refinery Company Ltd (MPMR), and Buhemba Gold Mines, as per their official website.
During the signing ceremony held on Monday, Mr. Elder Damon, the Acting Managing Director of GGML, highlighted that since the implementation of local content regulations in 2018, more local companies have been awarded vendor contracts in the mining industry. He further expressed his appreciation for STAMICO's provision of exploration drilling services at GGML, supporting surface exploration drilling programs since September 2020. "STAMICO has consistently maintained high standards in safety and drilling performance, aligning with our targets and objectives," Mr. Damon stated, emphasizing that the agreement signifies GGML's unwavering support for the development of skills and expertise in exploration drilling within the country. Dr. Venance Mwasse, the Director General of STAMICO, commended GGML for their trust and confidence in STAMICO's services since the inception of their initial contract in 2020. He assured GGML and the government of STAMICO's commitment to meeting the drilling targets with the utmost quality and standards.
The Minister for Minerals, Dr. Dotto Biteko, who graced the signing event, lauded STAMICO's remarkable performance since their contract with GGML in 2020, noting the significant improvement in their fortunes. He expressed his pride in STAMICO's representation of the country and its ability to attract investors such as GGML. Dr. Biteko also encouraged other local companies to take advantage of international tenders as supported by local content regulations. In addition to the agreement between GGML and STAMICO, STAMICO has other joint venture projects which include Buckreef Gold Company Ltd, located in the Lwamgasa area of Geita Region, which is a joint venture between TANZAM 2000 Ltd and State Mining Corporation(STAMICO) and it is expected to produce an average of 51,000 ounces of gold annually over a mine life of 16 years. The other joint venture project being done by STAMICO is the Mwanza Precious Metals Refinery Company Ltd (MPMR) which is a state-of-the-art automated gold refinery plant located in Mwanza Region, with a processing capacity of 480 kilograms of gold per day, adhering to international standards of 999.9 purity. And the Buhemba Gold Mines joint venture, located in Butiama District of Mara Region, is estimated to possess over 610,590 ounces of gold in hard rocks as indicated resources, with 441,772.29 ounces of gold already confirmed from six pits. The partnership between GGML and STAMICO, exemplifies the commitment towards the growth of the mining industry in Tanzania, with a focus on local content development and fostering expertise and skills in the sector. Overall, it showcases the collaborative efforts of government and private entities to promote economic growth and benefit local communities.
Geita Gold Mining Limited (GGML or Geita mine), one of AngloGold Ashanti’s flagship mines, is located in North-Western Tanzania in the Lake Victoria goldfields in Geita region, about 120km from Mwanza City and 4km west of the township of Geita. It has been in operation as a large-scale mine since 2000 but mining has taken place in the area since the 1930s. The Geita gold deposit is currently mined as a multiple open-pit and underground operation.
The mine is committed to the sustainable development of the communities surrounding the mine and has continuously demonstrated this by actively partnering with the Government in improving social services including education, health, water and roads as well as other economic activities for the community surrounding the mine.
The mine has spent over TZS 30 Billion to execute several community projects in partnership with the Geita local authorities after amendment of the Mining Act in 2017.
Geita mine remains a top taxpayer in the country’s extractive industry with US$1.7 billion borne and paid as tax to the Tanzanian Government. The company employs over 5,000 individuals both directly and through contractors of which about 98% are Tanzanian nationals.