High Hopes on Kabanga Nickel Project

Tanzania which already enjoys forex earnings from gold mining, stands another chance of minting more forex from the giant Kabanga Nickel Project, a 50/50 per cent Joint Venture between Barrick Gold Corporation and Xstrata Nickel. Staff Writer Michael Mbiro recently interviewed the General Manager of Kabanga Nickel Company Limited, Rod Pye about the giant project. Nickel, which still enjoys high demand and attractive price in the World Market, has been found s in Kasulu District, Kigoma Region, following exploration efforts by Barrick Gold Corporation and Xstrata Nickel. The mineral whose world market price has been inching up, this year reached 12 US dollars per pound up from 3 US dollars in 2003. Apart from Tanzania other African countries that have been minting money from the mineral are Botswana, South Africa and Zimbabwe, while in Europe major producers include Russia, Canada and Australia. \"The world price market has been very strong until last year and this has made us to continue with this project,\" Pye says. The GM says the company is still busy doing feasibility studies to determine the economic viability of the project. The feasibility studies are expected to be ready in September or October, next year. Other significant activities include; public consultations as part of the project Socio-Environmental Impact Assessment -EIA. Environmental Impact Assessment is executed in collaboration with the National Environmental Management Council (NEMC) working very closely with various government departments and surrounding villagers on social and environmental issues. \"This work is scheduled to be completed towards the end of next year,\" Pye says. \"Geological drilling to increase and improve confidence of the mineral resources and provide geotechnical information for site infrastructure also continues at the site,\" Pye says, adding that Indicated and Inferred Mineral Resource is currently estimated at 46 million metric tonnes containing 2.7 per cent nickel. Other minerals also found in small percentage include copper and cobalt and platinum. The project has already created employment for 500 workers who include geologists. On completion, the project will employ between 1000 to 2000 people. Pye also hints that the mine\'s life span is estimated at 20 years and its products will be for export and further treatment. Xstrata Nickel has todate spent over US dollars 50 million and has committed an additional US dollars 95 million for future work. There is a significant increase from the project\'s previous mineral estimate (inferred) of 26.4 million tonnes at 2.6 per cent nickel. The general manager also says site preparation will be ready late 2008 to early 2009, site construction early 2009 and first ore at lower rate level, late 2011, ramping up to full production over the next 3 - 5 years. On community engagement, he says the project has identified three community development initiatives, namely, disease control (Malaria, HIV/AIDS and TB), water infrastructure development and economic growth, alternative livelihood/ poverty alleviation. It has also put up a police post and donated desks to various schools. SOURCE: Sunday Observer