Tanzania sets up new mining company for Tulawaka Gold Mine project

tul-mine-image02-20131Earlier this year, ABG and MDN sold their ownership rights in the Tulawaka Gold Mine to STAMICO. (Image source: ABG)The Tanzanian government has set up a new company in Dar es Salaam to explore licenses around the Tulawaka Gold Mine and manage the project in the Kagera Region

According to East African Business Week, Tanzania’s minister for energy and minerals, Sospeter Muhongo, said the new company STAMIGOLD has been set up to make the Tulawaka Gold Mine profitable again.

STAMIGOLD is owned by Tanzania's State Mining Cooperation (STAMICO).

Until recently, the Tulawaka Gold Mine produced 2,664kg of gold, but operations ceased in March 2013 as the reserves had become economically unviable to extract and refine.

Earlier this year, African Barrick Gold (ABG), which owned a 70 per cent interest in the project, and MDN, which operated a 30 per cent stake, transferred their rights to STAMICO for US$4.5mn.

“STAMICO’s new responsibilities are to oversee government interests in large-scale mining projects, along with investing in the industry to develop and operate mines,” said Muhongo.

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