TZW
Committee chairperson Mr Dunstun Kitandula gave the Ministry a week’s ultimatum to inform the committee in writing on measures that would have been taken to enable the mine resume production before the situation gets worse.
Around 200bn/- was invested in the modern medium- sized gold mine, currently owned by a local investor in partnership with a Canadian partner. “This committee is not satisfied with the pace at which the ministry is addressing the matter given the fact that this matter is of national interest … we need a written report from the ministry on how it is dealing with this issue,” Mr Kitandula said when the committee was winding up its tour in the region over the weekend.
The delay in resolving the problem, he said, puts the lives of mine workers in jeopardy as well as denying the government ‘millions’ in revenue. Mr Kitandula also directed the Cata mining firm to provide a written report on how the investment was under threat after stopping production since June last year.
“We wish to see the ministry working on this issue as soon as possible and both reports from the ministry and the investor should be made available to us within one week period,” the Energy and Minerals Parliamentary Committee boss ordered. “… it’s very disgusting that this local investor has been left without any help … he’s been orphaned,” Mr Kitundula stressed.
Earlier, several Committee members expressed concerns over challenges facing the local investor and called for a quick solution that would enable the gold mine to resume production. Butiama District Commissioner Ms Anna-Rose Nyamubi said forcing the gold mine into partial closures was not just bad news to several hundreds of its workers but also to the district and regional economy.
Cata mining director Mr Mahuza Mumangi told the Parliamentary Committee that the investment was now at high risk after stopping production. “We’ve been paying salaries to about 400 workers over the past six months … when we had ceased production … but we’re now at stage where we cannot move forward … but we also have bank loans to repay.
Indeed we are ready to resume production even tomorrow if we are allowed,” Mr Mumangi said. The deputy minister for Minerals, Mr Stanslaus Nyongo confirmed that the mining company holds six primary mining licenses in the area.
Almost all MPs sitting on the Committee were visibly ‘sympathetic’ and called for quick resolution to the investor’s predicament. “… paying salaries to 400 workers isn’t that easy … they should be allowed to resume production … even tomorrow,” Mr Ally Kesssy said. Other MPs, namely, Joseph Kasheku Msukuma, John Heche and Ms Mariam Ditopile who is the Committee vice-chairperson, said it was “imperative for the gold mine to resume production.