Tanzania’s State Mining Corporation (Stamico) has entered a two-year deal worth Sh55.2 billion ($23.5 million) with Geita Gold Mining Limited (GGML), for rights to drill at the GGML’s mining site.
During the signing of the agreement on Monday, March 27, the acting managing director for GGML, Mr Elder Damon stated that the number of local companies awarded vendor contracts in the mining industry has risen since local content regulations were adopted in 2018.
The local regulations content states that an indigenous Tanzanian company must hold an equity participation of at least 20 per cent in a mandatory joint venture arrangement for supply of goods and services.
Mr Damon also spoke about Stamico and GGML’s relationship since 2020, and the fact that GGML’s interest “has been to support communities by equipping them with the skills to enable them to compete effectively. Stamico has been providing exploration drilling services at GGML, supporting surface exploration drilling programmes since September 2020.”
Geita Gold Mining is owned by AngloGold Ashanti, a global mining organization that is headquartered in Johannesburg, South Africa. The organisation’s mining operations currently span four continents. The Geita gold mining site in Tanzania is located at the North-Western part of the country.
Director general of Stamico, Dr Venance Mwasse, has also commended GGML for honest dealings since the initial contract in 2020 and stated that Stamico would meet all drilling targets.
“We would like to assure GGML and the government that our work will be executed with high quality and standards,” Dr Mwasse said.
The Minister for Minerals, Dr Dotto Biteko, who was also the guest of honour during the signing, revealed that GGML boosted Stamico’s revenue when both companies began dealing in 2020.
“Since 2020 things have completely improved. Stamico has performed very well in terms of quality deliverables, something which many of us are really proud of,” he said.
He added that “Stamico has represented our country very well and that is why many investors like GGML are still interested to work with them.”
The minister also called on other local companies to take advantage of international tenders whenever they are advertised because local content regulations would do well to support them.
