MANTRA’S MKUJU RIVER PROJECT TO GO AHEAD DESPITE THE DEPRESSED MARKET

Mantra Tanzania Managing Director Asa Mwaipopo presenting a paper on Tanzania’s Uranium Potential during the Tanzania Mining, Energy & Oil and Gas and Infrastructure Indaba 2012 that kicked off in Arusha on Tuesday.

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MANTRA’S MKUJU RIVER PROJECT TO GO AHEAD DESPITE THE DEPRESSED MARKET

By Staff Reporter

MANTRA Tanzania and its investors are committed to the developing the Mkuju River Project in spite of the continuing depressed uranium market after the Fukushima event, the company’s Managing Director Asa Mwaipopo has said.

While presenting a paper on Tanzania’s Uranium Potential during the Tanzania Mining, Energy & Oil and Gas and Infrastructure Indaba 2012 that kicked off in Arusha yesterday, Mwaipopo said the project will be a win-win situation to both the company and the country at large.

Mwaipopo said mining at the Mkuju River project will be according to the country’s 2010 mining Act that among other things addresses the need to increase loyalties. He noted that project will create one of Africa’s leading Uranium development companies and put Tanzania in the top 10 Uranium producing nations globally.

“The project apart from diversifying the mineral sector will generate direct and indirect cash flows to Tanzania in excess of $640 million over the current life of the mine of 12 years and also attract FDI in Tanzania excess of $1 billion over the life of the mine,” he said. Mwaipopo said the project will be developed in accordance with the set safety and environmental standards to ensure minimal risks when the project finally starts.

He however said the biggest challenge for the company is to educate communities surrounding the project and the country at large on the benefits that may come along which will help win public support.Earlier, the Deputy Minister for Energy, George Simbachawene, during the conference re-affirmed Government’s commitment to support the project because of its economic viability.

“We will go-ahead with mining uranium in areas proved to be with enough mineral resources. We can only consider not doing so if research indicates that mining of the mineral affects the eco-system. If for instance we get reports that there are enough mineral resources for instance at the AICC building where am standing right now, we will have no option but to demolish AICC and go on with the project,” he said.

A three day event that closes on Friday brings together key players in mining industry that include government ministers & agencies, company executives, relevant organisation heads among others.