FACTBOX-Tanzania’s mining, oil and gas industries

DAR ES SALAAM, Oct 22 (BestGrowthStock) – Here are the main facts
about Tanzania’s mining, oil and gas industries. [ID:nLDE69L0P2]

MINING

* Tanzania is Africa’s third largest gold producer after
Ghana and South Africa.

* In April, Tanzania’s parliament passed a new mining law
that increases the rate of royalty paid on minerals like gold to
4 percent from 3 percent.

* The Mining Act 2010 also requires the government to own a
stake in future mining projects and all mining companies to list
on the Dar es Salaam Stock Exchange.

* There are reserves of uranium, nickel, coal, iron and
diamonds.

* Earnings from gold exports jumped by 62 percent in the
year to July 2010 to $1.36 billion, while volume rose by 31
percent to 38.1 tonnes, according to the central bank.

* Big mining firms in Tanzania include Canada’s Barrick Gold
Corp (AB.TO: ) and South Africa’s AngloGold Ashanti (ANGJ.J: ), the
world’s No. 3 gold miner.[ID:nLDE69D084] [ID:nLDE69E083]

* Tanzania is the only place in the world that produces the
gemstone tanzanite, from the region around Mount Kilimanjaro.

* Tanzania’s government said last year the country had at
least at least 53.9 million pounds of uranium oxide deposits and
expects to start mining some of that by 2011.

* In May, French energy group Areva (CEPFi.PA: ) said it was
interested in developing Tanzania’s uranium deposits.

* African Eagle Resources Plc (AFE.L: ) (AEAJ.J: ) has the Dutwa
nickel project, which has a nickel resource of about 845,000
tonnes.

EXPLORATION FOR OIL AND GAS

* Tanzania has 17 companies exploring for oil and and gas on
and offshore.

* Tanzania said in September its fourth deep offshore
bidding round will be launched in the United States around April
next year. The bidding round will include 13 deep offshore
blocks located around 1,200 and 3,000 metres below.

* Among the firms that hold exploration blocks in Tanzania
are Canada’s Artumas Group Inc (AGI) (AGIC.OL: ), France’s Maurel
& Prom (MAUP.PA: ) and Norway’s StatoilHydro ASA and Shell
International (RDSa.L: ).

* Tanzania has made natural gas discoveries in four
locations. Two of them — Songo Songo off its eastern coast and
Mnazi Bay in southeast Tanzania — are in production.

* Oslo-listed Artumas Group Inc, which has the Mnazi Bay
licence, estimates the gas potential at 3 trillion cubic feet.

* Utility Songas runs Songo Songo through operator
PanAfrican Energy, a subsidiary of Canada’s Orca Exploration
(ORCb.V: ). It supplies the gas to 35 industrial customers and
also generates some 190 MW at its power plant in Dar es Salaam.
(Reporting by George Obulutsa, Editing by James Macharia)

FACTBOX-Tanzania’s mining, oil and gas industries