TANZANIA EYES 220 BILLION SHILLINGS ANNUALLY IN ROYALTIES, TAXES FROM GRAPHITE PROJECT

DAR-ES-SALAAM-- The Tanzanian government expects to earn 220 billion shillings annually in royalties and different taxes from the nation's graphite industry, says the Ministry of Minerals.

The earnings re expected to start flowing in upon completion of the plant testing and commencement of full operation at the Mahenge graphite project being undertaken by Australian mining company Black Rock, which has also promised to build the giant graphite mining plant in Ulanga District under the Mahenge graphite project.

The Mahenge project is ranked the world's fourth largest graphite resource.

The company has successfully managed to transport the sample from Black Rock's Mahenge graphite project, South of Ifakara, to a laboratory in Australia before deciding on the establishment of a second pilot plant. The consignment was transported by the Tanzania-Zambia Railway (TAZARA) from Ifakara to Dar-es-Salaam port.

Speaking during the launch of transportation of graphite by rail from Ifakara to Dar es Salaam port last week, Eastern Zone minerals officer Theresia Ntuke said the project was expected to greatly contribute economically to the nation, producing at least 80,000 tonnes of graphite annually. She said that the project is later expected to produce at least 250,000 tonnes, annually.

Ntuke who represented the Deputy Minister for Minerals, Dotto Biteko, at the ceremony, said the project was expected to contribute three per cent royalty, which is about 14 million US dollar (about 30 billion shillings), with the firm also paying about 60 million USD (about 130 billion shillings) in taxes.

Graphite, a non-metallic mineral, is a high-demand product, thanks to technological advancements with its applications ranging from the manufacturing of pencils to automobiles, mobile phones and electric cars.

Source: NAM NEWS NETWORK