JF Exclusive: The Buzwagi Contract

[Mwafrika wa Kike]

ARTICLE 3 GRANT OF RIGHTS

3.1 As soon as possible, and in any event not later than sixty (60) days after the Company has lodged an application for a special Mining Licence, the Minister shall, pursuant to the Act, grant to the Company the Special Mining Licence over the Contract Area for an initial period of twenty five (25) years.

Haya basi.... ninashangaa sana matumizi ya neno shall kwenye huu mkataba.....jinsi yanavyounganishwa na Karamagi!

3.2 The rights and obligations of the Company under this Agreement and the Special Mining Licence shall, subject to this Agreement, subsist during:

3.2.1 the duration of the Special Mining Licence granted under
Article 3.1 above, which shall be for a period of twenty
five (25) years with an option for the Company to renew
the same upon the same terms and conditions for a further
period of twenty five (25) years.

3.2.2 if at the end of the renewal period granted pursuant to
Article 3.2.1 above, the Company applies for a further
renewal, the Minister shall, if he is reasonably
satsfied that the further renewal is in the public
interest,procure the grant of such renewal as requested
for such further period as he may determine

Najaribu kuwa retard kidogo hapa... yaani jamaa wameamua hata minister baada ya Karamagi lazima awe a "he" (just making big deal out of everything... kwi kwi kwi kwi kwi)

kazi kweli huko Buzwagi......

 

[Dua]

"Bwa'Mdogo, Ishu Ya BuzwagiTuimalize Ki-shkaji!

Karamagi ( Mzee wa Buzwagi) kushoto, Mama Meghji ( katikati) na Zitto Kabwe walipokutana bila kutarajiwa kwenye ukumbi wa VIP uwanja wa ndege Dar juzi. Zitto alikuwa akitokea Nairobi wakati Karamagi na wenzake walikuwa wakimsubiri Mh. Rais akitokea Marekani. Picha hii nzuri nimeitoa JF , bahati mbaya jina la aliyepiga halikutajwa.

Credit:Mjengwa blog​

 

[Gamba la Nyoka]

Article 3.1 above, which shall be for a period of twenty
five (25) years with an option for the Company to renew
the same upon the same terms and conditions for a further
period of twenty five (25) years.

Why after the first 25 years, then the next 25 years bear the same terms and conditions?

why the contract doesnot leave a room for negotiation with the same company(barrick) after they finish their first phase of 25 years, instead it insist on the the same terms and conditions when negotiating the second phase?.

Here i think barrick wants this Buzwagi thing for 50 years not 25years,thats why they make sure they clear thier way right now.

And they know ,if they establish themselves at buzwagi for all these 25 years, it will be easy for them to lobby the government to sign the other 25 years, so they are trying to play smart from the early beginning!.

just imagine,the one who will be a minister at that time,his hands are being tied off right now, decisions are made on behalf of him rightnow, to me this is very ridiculous!

 

[Steve Dii]

Kamala Luta, naomba kama unaweza i-edit hiyo kazi yako kubwa hapo juu kuhusu Mwl. Nyerere (RIP) ili iweze kusomeka kwa urahisi zaidi kwa kuwa na paragraphs. Ni hayo tu. Ahsante.

SteveD.

 

[Joel]

empowerment funds kweli kabisa ni kwa ajili ya hao wakubwa hatuoni empowerment yoyote kwa kweli kwa sisi watu tulio nje ya uongozi yaani wananchi wa kawaida

 

[Mwafrika wa Kike]

ok JF members and non-members...

article 6 & 7 zinakuja hapa....

 

[Mwafrika wa Kike]

ARTICLE 6: SALES AND MARKETING ARRANGEMENTS

6.1 The Company shall as soon as possible submit to the Government copies of all agreements relating to the refining of, sales and marketing and any disposal of Gold and other minerals produced in the licence area.

sijui wanavyosema Govt wana maanisha wanamtandao peke yao au...?

 

[Mwafrika wa Kike]

ARTICLE 7: PROCUREMENT OF LOCAL GOODS AND SERVICES

7.1 The company will give preference of Goods and Services available in Tanzania provided such goods are of internationally comparable quality, are available at required time and quantity and are offered at competitive prices on delivered basis in Tanzania.

What...?

hata vitu vya ndani hawatanunua maana wao ndio wata-define hiyo international standard, time and quantity, price, and all the crp

7.2 The Company in consultation with the Minister will establish appropriate tender procedures to give effect to the above clause taking into account Tanzanian local conditions and enabling suppliers to bid for the supply of such goods and services and for the provisions of such services.

Naona hii local condition ndio itawaondoa kabisa wajasiriamali kwenye bidding process ukichukulia kuwa consultation itafanywa na waziri (in this case Karamavi)!

yangu macho!

 

[Mwafrika wa Kike]

waungani mimi nashindwa kuelewa tunaelekea wapi nchi etu inauzwa tunaona mimi nimezuliwa kufanya mtihani kwa kukosa asilimia arobaini lakini bado serikali inagawa rasilimali zetu ambazo zingetusomesha sielewi kwa kweli

pole sana chilamjanye kwa kuzuiwa kufanya mitihani kwa sababu ya pesa.... nijuavyo mimi, vyuo vingi duniani huwaruhusu watu kufanya mitihani kama wamemaliza masomo yao kufanya mitihani lakini kuzuia transcripts kama pesa haijalipwa....

yaani sijui tu cha kusema kuhusu issue yako........ safari ni ndefu ila kuna mwisho wa uonevu wa ccm....

 

[Ufunuo wa Yohana]

madini ni yetu, nchi ni yetu, mita 100 kutoka fansi ya mgodi analala mama mmoja masikini wa kutupa, kara yuko ktk bangaroo aliyeamua kusign,
Siku inakuja tena ya kutisha mmno, kaeni tayari pale watapoomba milima iwaangukie na haitaanguka, tetemeko liwafunike haitakuwa. majumba ya samani hayatakuwa na maana tena hayatakuwa na msaada, pesa benki hazitakuwa na msaada hata kidogo. Jitieni moyo na kukaze mwendo Mungu siku moja atasema Yatoshaaaaaa. nayo iko karibu tena mno.

 

[Mwafrika wa Kike]

Ok JF members!

Sehemu zilizobakia nitajaribu kuziweka hapa soon maana kuna mikataba mingine inazidi ku-leak day after day. Richmond umetoka na soon ile mingine ya Bulyanhulu, Geita na Tarime itatoka ili yote iweke hapa.

Vuteni subira kidogo

 

[Mkandara]

Mwaka wa kufa ni kufa tu....
Haya msije sema hatukuyaona haya yakija...Baada ya Buzwagi migodi ya Chunya nayo ipo machoni mwa mafisadi. Wanasuka kitu kiitwacho - FITNA!

Wachimbaji wadogo wa dhahabu Chunya, Tanzania wanaharibu mazingira

2007-10-28 15:44:34
Na EAR Habari

Hali ya mazingira katika wilaya ya Chunya mkoani Mbeya nchini Tanzania, inazidi kuharibiwa vibaya kutokana na uharibifu mkubwa unaofanywa na wachimbaji wadogo wa dhahabu wilayani humo.

Kuharibiwa kwa mazingira hayo, kumetokana na kasi ya ukati miti inayofanywa na wachimbaji hao, ambao pia huchimba mashimo marefu na kuacha bila kufukia, hali inayohatarisha usalama wa wanyama na bindamu, wanaotembea katika mapori hayo.
Mkurugenzi Mtendaji wa halmashauri ya wilaya ya Chunya Bw. Maurice Sapanjo, amesema kazi ya wachimbaji hao ni haramu, kwa kuwa mbali na kuharibu mazingira pia imechangia kukausha vyanzo vya maji, na kusababisha wananchi kutafuta maji kwa umbali mrefu.

 

[Cute Jan]

hapo hata mimi nimechoka kumbe nilikuwa gizani kiasi hicho.

 

[Mfamaji]

Kazi nzuri sana kabisa. Bora tujue mafisadi wanavyotula ili siku tukiamua kuwala tujue pa kuanzia.

 

[Nesindiso Sir]

Ufisadi utaendelea hadi kiama cha CCM.

 

[NakuliliaTanzania]

Ufisadi utaendelea hadi kiama cha CCM.

eeka sir, !!

 

[bokassa]

Duh!!yale yaleee!!!!!

 

[Mnhenwa Ndege]

I appologize profusely if i am going out of topic, samahani sana lakini this is my perspective.

kuchambua mikataba mibovu ni very essential at this juncture, but also we have to focus on the explicit cause of the need for invenstors in the mining sector in the first place. kama our professors were resourceful and inventive, we would be having the technology ourselves and no need for buzwagi contract.

Jamani hawa jamaa wanaojiita maprofessor in Tz what have they contributed in the technology of Tanzania? what they want is academic prestige and showing off that they are educated. kazi imebaki ni kutengeneza milling machines, hata knowing the cause of the decrease of the ice on mount kilimanjaro kuwa ni sublimation and not global warming it has to be done by professors from Australia and the US.

Vijamani Hawa maprofesa wetu wako wapi, do you mean that we dont have engineer who have the technology to excavate minerals eg Gold, tanzanine e.t.c.

 

[Pundit]

Bwana Ndege you are not off topic, your points bring a very thoughful evolution to the thread.

Hivi Tanzania kuna maprofesa wangapi? Mi naliangalia tatizo aliloleta bwana ndege hapo juu kuwa siyo tu hatuna ma-profesor wazuri, bali pia hatuna ma-professor wa kutosha ku-stimulate meaningful and vigorous scientific thought.Mara nyingine wanakuwa wale wale tu kila kona, kwenye kongamano and all.

Halafu pia lawama wasipewe ma-profesa tu, wasomi wote kwa ujumla. Albert Einstein aliweza ku-revolutionalize physics akiwa a very young patent officer hapo Berne bila hata ya kuwa professor, watu wengi wanatoa contribution nzuri tu katika research kama grad students (some do more than the professors).

Kwa hiyo kuna swala zima la jinsi gani tuna prioritize elimu na research.Naona hatujalipa kipaumbele cha kutosha.Tunalipa madeni kwanza!

 

[BAK]

New report slams Buzwagi contract

THISDAY REPORTER
Dar es Salaam

A NEW report issued by several faith-based and civil society organisations has slammed the Buzwagi gold mine deal, saying members of parliament and the general public were hoodwinked by ex-minister for energy and minerals Nazir Karamagi into thinking that the upcoming project would pay huge taxes to the government.

’’The (former) Minister for Energy and Minerals, Nazir Karamagi, has told parliament that the Buzwagi gold mine will yield $198.9m (approx. 240bn/-) in royalties and other taxes over a 10-year period, which is around $20m (approx. 24bn/-) per year,’’ says part of the report titled ’A Golden Opportunity - How Tanzania is Failing to Benefit from Gold Mining’ unveiled this week.

It adds: ’’He (Karamagi) also said that the mine would pay an additional $50.3m (approx. 60bn/-) in payroll taxes over the ten years - this revenue is about 16.6 per cent of total turnover from the mine, based on current gold prices.’’

However, none of these projected revenue collections forms any part of the signed contract itself, and according to the report: ’’It appears they have been put forward to hoodwink parliament and silence calls for parliamentary scrutiny of the contract.’’

According to calculations made by the report authors Mark Curtis and Tundu Lissu, the total amount that the Buzwagi mine owners, Canada’s Barrick Gold Corp., would pay in tax (minus royalty) amounts to just $583,980 (approx. 700m/-) per year for the duration of the mine.

’’This figure is derived from $200,000 in district council rates and taxes, $200,000 in road toll contributions, $125,000 in contributions to the empowerment fund, $10,000 in other taxes, duties, fees or imposts of general application, and $48,980 in land rent at the rate of $2,000 per square kilometre,’’ says the report.

When contacted for comment, Barrick Gold Tanzania spokesman Teweli K. Teweli dismissed the report findings as fabrications and mere speculation.

’’The figures quoted in the report are just fabrications - there is nothing factual. The authors did not even take the trouble to talk to Barrick and ask for correct figures on the amount of taxes we shall pay from the Buzwagi mine,’’ Teweli told THISDAY.

The report authors are heavily critical of the contents of the Buzwagi mineral development agreement, saying the deal was of ’’extraordinary benefit to Barrick while offering decidedly little to Tanzania’’, just like other controversial mining agreements signed between the government and foreign companies.

It notes that, among other things, the 25-year Buzwagi contract commits the government to maintain the current tax levels in the country throughout the lifespan of the project, which is estimated at 10 years at least.

’’Perhaps most bizarrely, the contract commits the parties, in the case of a dispute, to enter into arbitration in London, not Tanzania,’’ says the report.

It adds: ’’A clause states that the London Court of International Arbitration be the administering body. This is consistent with paragraph 5(3) of Schedule 4 to the 1998 Mining Act, which stipulates that disputes between investors and Tanzania government shall be settled under the aegis of the International Centre for the Settlement of Investment Disputes (ICSID), an arm of the World Bank’’

The report further notes that the contract was signed in a hotel in London, rather than in Dar es Salaam, ’’which aroused considerable critical media and parliamentary comment.’’

Buzwagi, which will become Barrick’s fourth gold mine in Tanzania, has proven and probable gold reserves pegged at 3.6 million ounces.

The mine is scheduled to begin production mid-next year at a cash cost of $300 per ounce, and is expected to produce 250,000 ounces of gold per year in the first five years of production.

Barrick plans to invest up to $400m (approx. 480bn/-) in the mine located in Shinyanga Region.

The report highlights millions of dollars in lost government income from the mining sector occasioned by a combination of reasons, including tax loopholes, an unfavourable mining regime, and tax evasion.

’’Tanzania is one of the ten poorest countries in the world. At the same time, Tanzania possesses around 45 million ounces of gold, which at the current gold price means this country is sitting on a fortune of up to $39bn,’’ says the report.

It warns that since minerals are a dwindling resource, it is important for the country to earn a windfall from gold while reserves last.

’’The country’s proven reserves of 45 million ounces are being extracted at a rate of over 1.6m ounces a year, meaning that they may last 28 years. But three of the country’s six large-scale gold mines are set to close within ten years,’’ cautions the report.

It recommends major policy changes by the government in the mining sector, including a review of mining and tax laws, engaging donor support, developing a strategy document to outline how government plans to harness mining revenues for national development, strengthening parliamentary scrutiny, introducing independent audit, enforcing public disclosure, and creating local accountability.

The report published by the Christian Council of Tanzania, National Muslims Council of Tanzania (BAKWATA), and the Tanzania Episcopal Conference (TEC) was financed by the Norwegian Church Aid and Christian Aid.