On 27th March 2023, Geita Gold Mining (GGML) and Tanzania’s State Mining Corporation (STAMICO) signed a two-year agreement worth TZS 55.2 billion to execute drilling activities at the gold mine.
Located in north-western Tanzania, the Geita gold mine is wholly owned by global gold mining company AngloGold Ashanti.
Speaking during a ceremony to sign off the agreement, the GGML acting Managing Director Elder Damon hinted that since the introduction of Local Content regulations in 2018, the number of local Tanzanian businesses successfully winning vendor contracts within the mining sector has increased.
Damon explained that “Our interest has been to support the 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. STAMICO has provided exploration drilling services with high standards in safety, and drilling performance in line with drilling targets and objectives. This MoU with STAMICO demonstrates continued support for the development of skills and expertise around exploration drilling in the country.”
For his part, Dr Venance Mwasse, the STAMICO Managing Director commended GGML for trust and confidence in what they have done since their initial contract in 2020 and vowed to meet the drilling targets.
He also stressed that this contract is a confirmation that Tanzanians can fully participate in contracts that occur in the mineral value chain.
“We would like to assure GGML and the Government that our work will be executed with high quality and standards,” said Dr Mwasse.
The guest of honour who graced the sign-off event was the Minister of Minerals of Tanzania, Dr Dotto Biteko, who revealed that STAMICO’s fortunes had changed for the better since their initial contract with GGML.
“Since 2020 when STAMICO signed its first contract with GGML, things have completely improved. STAMICO has performed very well in terms of quality deliverables something which many of us are really proud of. STAMICO has represented our country very well which is why many investors like GGML are still interested to work with them,” said Dr Biteko.
He also called upon other local companies to take advantage of foreign tenders whenever they are advertised because local content regulations support them.
In 2021, the Geita gold mine reached a production of 486,000 oz. Data for 2022 are not yet available at the time of writing.
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