Tanzania has passed key legislations to control uranium mining. This will allow Canadian firm, Uranium One Inc, to start production at Mkuju River before the end of the year.
The 2010 Mining Act and its regulations point out that the role of the government would be to control exploration, storage and export of uranium in order to avert smuggling especially for manufacture of military weapons.
Russian based miner Atomredmetzoloto (ARMZ), which owns 51% of Uranium One, bought Mantra Resources Ltd and its Mkuju River project in Tanzania last year and is going on with the project following the legislation. The roject is expected to be completed in the first quarter of 2012.
Uranium One is working on a project in south Tanzania, which it claims has an inferred mineral resource of 35.9 million pounds of uranium oxide, and Uranex’s project in central Tanzania has an estimated 6.7 million pound resource. The two firms were among 20 companies licensed to explore for uranium in East Africa’s second largest economy.
Tanzania has uranium oxide deposits of at least 54 million kilogrammes, which are yet to be extracted.
There are three proposed key uranium projects countrywide namely Bahi North in Dodoma region, Manyoni in Singida and Mkuju River in Ruvuma region.
The contribution of the mining sector to GDP is projected to grow to 10 per cent by 2025.
Source: East African