Nmdc Eyes Gold In Tanzania

NMDC eyes gold in Tanzania

PSU had set a target to start a mine in the African country by 2004-2005

Press Trust Of India / Kolkata

15th February 2006

State-run National Mineral Development Corporation Ltd (NMDC) will spend Rs 6.5 crore [ within the next 12 months to prepare a detailed project report for its proposed gold mine operation in Tanzania.

"We are currently engaged in exploration of gold mines in Tanzania and have spent Rs 2.5 crore in the first phase. In the next phase, which will see an investment of Rs 6.5 crore, a detailed project report will be prepared to assess its feasibility," NMDC chairman-cum-managing director B Ramesh Kumar said.

The company has obtained all necessary permissions from both Indian and Tanzania governments for gold mining and an Ireland-based financial consultant has been entrusted to do the studies, he said on the sidelines of India Mining Summit.

"We hope to start our operation soon after completion of the detailed project report. The report is expected to be submitted within 18 to 20 months," he said.

Three prospecting licenses were granted to NMDC by the Republic of Tanzania to explore the gold prospect.

The licenses are identified as Bulyang'OMBE-i and Bulyang'OMBE-ii in Iguna district and Siga hills in Kahama district.

The first phase of exploration included drilling, survey, mapping, sampling and chemical analysis and geochemical and geophysical studies.

The studies revealed Bulyang'OMBE-i had a good prospect for good concentration where gold values were although erratic had shown maximum of 7.2 g/t.

The PSU had set a target to start a mine in the African country by 2004-2005.

A 'mini ratna' in category 1, NMDC was also expanding its activities to Nambia, Angola, Botsowana and Algeria by locating suitable deposits in mineral like gold and diamond.

On proposed disinvestment of NMDC, Kumar said it would not affect the company's operation.

"The government had 98 per cent stake in the company. Mostly small investors will pick up that 15 per cent stake with none of them exceeding one per cent share. So the proposed disinvestment will not affect the company's operation", he said.

NMDC was set to record a turnover of more than Rs 3,000 crore, while its profit after tax would cross Rs 1,500 crore by the end of this fiscal, he added.