16 May 2017

Tanzania: Prof Muhongo Declines to Sign Transfer of Mining License to Chinese Investor

Photo: Daily News
(file photo).

Dodoma — Minister for Energy and Minerals Prof Sospeter Muhongo has refused to sign the transfer of a mining license from a local investor to a Chinese company Mechanized Minerals Supreme Mining Company Limited.

The local investor, Mr David Stanley owned a plot of about 0.43 Kilometers (Number ML571/2017) located at Fufu area in Chamwino District, in Dodoma region.

Prof Muhongo declined the transfer of the mining plot after he discovered that the deal wouldn't benefit local investors.

Speaking with mining investors on Monday, Prof Muhongo urged them to ensure that all contracts to be signed were benefitting locals.

He furtherer instructed the Chinese investor--of the Mechanized Minerals Supreme Mining Company Limited to sit at a negotiating table with the owner of the plot--Mr Stanley and figure out how best both investors could benefit from the deal.

"In order for me to sign the transfer, you must agree with the owner in a manner that he will benefit from it, we can't approve the deal that has little impact to local people," said Professor Muhongo.

Earlier, the minister was told that, from the transfer, Mr Stanley has pocketed Sh30 million and would be employed to provide cheap labour. In response to that, the minister refused to sign until further consultations between the two parties were made.

The minister went further to direct the commissioner of Minerals Benjamin Mchwampaka to ensure the applicant files a written document, pledging to put national interests first.

For his part, the commissioner Mchwampaka apart from pledging to implement the minister's directives, he urged investors to comply with the requirements of the Tanzanian's Mineral Act of 2010.

Investors whose transfers succeeded were Salim Salum who was transferring three mining licenses in Handeni district in Tanga region, Ulanga district, Morogoro Handeni mkoani Tanga to S & T Marble and Mining Limited.

Others are ML 577/2017 of Mbarouk Saleh Mbarouk, Mkuyuni Matombo in Morogoro District.

Furthermore, there was a deal between Tanzania Portland Cement, number ML 575/2017 which deals with limestone at the Wazohill area, in Kinondoni district, Dar es Salaam. The deal will last for a period of ten years.


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