NMDC devises short-term plan for Tanzania gold project

Company had been granted four mining leases in 2012

State-run iron ore miner NMDC has devised a short-term strategy, which includes a small-scale mining and setting up of a minor processing plant, for its gold project in Tanzania.

“A short-term strategy has been finalised for development of the mine by small-scale mining and setting up of a small - scale modular processing plant,” a senior NMDC official said. Tanzania’s Ministry of Energy and Minerals had granted NMDC four mining leases at the Bulyang/’Ombe gold prospect in 2012 having a total area of 38.83 sq km for 10 years.

This comes nearly one and a half years after the Indian firm submitted the feasibility report.

The official did not divulge the reason for going slow. A top official of NMDC had earlier said the miner was planning to invest about $50 million in the Tanzanian mine.

NMDC may develop the project through a Mine Development cum Operator (MDO).

NMDC, India’s largest iron ore miner, carried out gold exploration in southern region of Lake Victoria, north-western part of Tanzania, during 2000 to 2003 and delineated promising targets in Siga Hill area (Kahama district) and Bulyang / ’Ombe area (Nzega district).

The Bulyang/’Ombe mine is estimated to have large amount of gold deposits. NMDC has also opened an office in Tanzania.

Apart from iron ore, NMDC is also into diamond mining and its production of the precious material last fiscal stood at 37,007 carats. NMDC, India’s only diamond producer, produces diamond from its Panna mine in Madhya Pradesh.

NMDC produced 30.18 million tonnes (MT) iron ore in last fiscal and sold 30.50 MT of the key steel-making raw material.