Richland reviews operation in Tanzania

RICHLAND Resources has launched a strategic review of its tanzanite operation in Tanzania after failing to dislodge illegal miners occupying a substantial portion of its acreage.

Richland said that because of illegal mining activities its workers cannot work safely nor can it make profit as its cost structure is based on mining the whole of its licenced area.

The company signed a joint venture agreement with state owned mining group Stamico at the end of 2013 and hoped to see the government help eject the illegal miners from Block C at Mererani, but ended disappointed with the response so far.

“Until the review is complete and access and security in Block C at Mererani is secured, Richland will not put any more money into TML, the joint venture with Stamico that operates the mine,” read a statement issued by the company.

Richland had cash of US$ 3 million at the end of March and to preserve funds the directors have taken a 50 per cent pay cut until TML or Richland is operating profitably again.

The company said it will not be providing any funds to TanzaniteOne Mining Ltd until the review has been completed and the security of its employees has been ensured.

When contacted for comments, the Director General of Stamico, Mr Gray Mwakalukwa, told ‘Daily News’ the government was addressing the problem of illegal miners at the Mirerani Block C.

He said Stamico and the Richland Resources have had meetings to address the problem of illegal miners at its Mirerani Block C.

“There are specific measures being taken to address the problem,” he said but would not go into details as he was out of office.

The problem of illegal miners had a long history and therefore could not be resolved overnight, he said.

SOURCE: DAILY NEWS

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