Portifolio

This is a best prospect industry for an investor seeking to venture into Tanzania

Overview

Tanzania is endowed with vast quantities and types of resources whose extraction has been central to the country’s economic growth. Mining is one of the leading sectors in Tanzania, with the value of mineral exports increasing each year. Leading minerals include Gold, Iron ore, Nickel, Copper, Cobalt, Silver, Diamond, Tanzanite, Tin, Ruby, Garnet, Limestone, Soda ash, Gypsum, Salt, Phosphate, Coal, Uranium, Gravel, Graphite, Sand and dimension stones. The United Kingdom is currently the largest foreign investor in this industry in Tanzania with other projects by investors from India, China, Kenya, USA, Netherlands, South Africa, Canada, Germany and Oman.

Tanzania is the 4th largest gold producer in Africa after South Africa, Ghana and Mali. The mining industry experienced an estimated 15.3 percent growth in the first quarter of 2020 compared to 10 percent growth during the same quarter in the previous year. There is an increase in mineral revenue collection from $84.5 million in 2015/16 to $202.7 million from July 2019 to April 2020.

There have been a number of changes in the Mining industry due to the 2017 Minerals Act. The Government of Tanzania is trying to make the sector more attractive by reducing restrictive regulations and increasing incentives for players in the industry. The changes in the legislations have however increased loyalties increasing from 4 percent to 6 percent and an introduction of 1 percent clearing fees on the value of all minerals exported from the country. Also, the new laws give the Government the ability to acquire 16 percent of shares from major mining companies on free carrying basis. The amendments for example, led to the establishment of Joint Venture Company known as Twiga Minerals Corporation Limited between the Government (16 percent shares) and Barrick Gold Corporation Company (84 percent shares); and payment of compensation of $100 million from Barrick Gold Corporation Company as initial settlement of the agreed $300 million.

The Government of Tanzania would like to see more mining and mineral value-addition activities in the country, including: cutting, smelting and other processing mineral processing activities, as of 2020 two model gold smelters were built in Lwamgasa and Katente, one stop mineral processing and export centers, strengthening mineral control and reduction of smuggling. The construction of a 24.5km wall around the Mirerani Tanzanite mining area is in the same spirit. Also, 28 markets and 25 mineral centers have been established.

In recent years, mineral exploration has increased in several parts of the country. The sector has attracted substantial new foreign investment in mineral exploration, with local investment surpassing $1 billion.  Recent nickel, helium, graphite, uranium and coal finds have spurred increased interest on the part of investors. But generally the mining sector is still poorly exploited and has potential to yield significant ROI at optimal operations

Sub-Sector Best Prospects

The mining sector depends on imported machinery and supplies, and investors can import capital goods at minimal duty. There are significant opportunities for the export of technology, machinery, and professional services required in this sector.  Mining companies have significant demand for better power alternatives as they currently rely on diesel generators. The Tanzanian Government encourages mining companies to procure local goods and services whenever possible, and foreign mining Companies are encouraged to increase local consumption to support the Tanzanian economy.  There is significant opportunity to supply machinery, explosive equipment, foodstuff, clean water,enviroonmental conservation, training, consultancy and other services.  With an unreliable power grid and rail system, alternative energy and transport solutions are also in high demand.

Opportunities

• Establishment of gold refinery activities
• Supply of machinery, explosives material etc., under joint venture with Tanzania entrepreneurs
• Establishment of value-addition activities i.e. Lapidary and Jewelry
• Gemstone cutting and polishing (lapidary). In 2010, the Government passed a new legislation banning the export of unprocessed gemstones in a bid to spur local value addition.
• Rock and mineral carvings
• Jewelry manufacturing utilizing gold and gemstones
• Mineral processing industry e.g. smelters
• New areas in mineral exploration
• Drilling

 ROI in any of the areas listed above is deemed to be significantly rewarding, the areas to invest in this sector are numerous and Certainly There is Something for Everyone.

Arusha Gem Trade is an Exploration and trading company with  portfolio in Gold, and variety of gemstones within Tanzania. AGT has partnered with other local mining companies in Tanzania, in a bid to secure joint venture partners to invest in Mining and other sector related activities. Our goal is to improve  productivity in already existing mines and to open and reopen stalled operations, enhancing the existing and deploying additional state of the art processing technology. We have the option to secure joint venture finance and manage operations on behalf on our partners. The mineral deposits in mines listed under our portfolio are significant and viable for investment.

We currently hold concessions in Gold, Tanzanite, Green garnet/ Tsavorite, Ruby, Spinel, Emerald, Dolomite. Arusha Gem trade Company manages concessions with an estimated value of over USD 50M and with a potential to yield exponentially on exploitation. Our portfolio includes presently active mines and also to be opened mining sites.

Officers/Directors and insiders of AGT  own approximately 43% of the shares on these concessions. AGT Management includes:

Mr. Justin Nyari (CEO)- Managing Director of J N Mining Co. Ltd, with a record for being a five consecutive years top exporter of Tanzanite in Tanzania and owner of concessions in Tanzanite, Tsavorite, Spinel, Emerald  and Dolomite. Also Mr. Nyari is the current Chairman  of the Manyara Region Miners Association( Marema).

Mrs. Magreth Justin Mirisho; Director J.N Mining Co. Ltd, She is also  the private owner of Two Gold Mine Concessions located in Singida area of Tanzania, covering a total area of about 20 hectares.

Mr. Geoffrey Sayore: Owner of concessions in Gold, Ruby and Sandstone, and with vast experience in Mining operations within Tanzania.

Justice Nyari: Marketing Manager and mining Supervisor Tanzanite Mine Mirerani, with about 10 years experience mining Tanzanite,

Gipson Mliwa: Mine Engineer with experience having worked across Africa, majorly in Kenya, Ethiopia and now Tanzania.