State-owned Tanzania gold mine, Stamigold Biharamulo, has announced plans to expand production in their Lake Victoria area mine to reach 40,000 ounces of gold in 2015, representing an increase of four times the company’s expected production capacity for the current year.
In November 2013, the Tulawak gold mine was renamed it Stamigold Biharamulo and became the first state-owned gold mine in the country when the African Barrick Gold (ABG) sold it to the Tanzanian government along with some exploration rights.
According to the mine’s Managing Director, Edwin Ngonyani, who recently spoke to Reuters reports, the company has opened new pits and extended the life of the mine for at least three additional years.
“We have started mining a new open pit and extended the life of the mine for three more years,” he told Reuters, “We are still doing some more exploration work and there is a possibility that the life of the mine can be further extended if we find sufficient gold reserves.”
As a result of the increase in production capacity, total cash costs at the mine are projected to decrease from USD 920 per ounce to USD 800 per ounce.
