A joint venture agreement between the State Mining Corporation (STAMICO) and Plantcor Mining and Plant Hire (Pty) Ltd of South Africa was signed here yesterday.

Dr Steven Kiruswa, the Minerals deputy minister, presiding over the signing ceremony, said the pact is a milestone, meant to open up the mining sector to international investment while prioritizing national interests.

This partnership is intended to develop seven gold exploration licenses currently held by STAMICO, marking a significant step in utilizing the country’s natural resources for the direct benefit of the population, he said.

The landmark investment in the Kigosi gold mining area is poised to reshape the economic landscape of Geita Region, promising a surge in local employment and enhanced tax revenue, being implemented under a joint venture model.

STAMICO will participate in all key stages, from detailed exploration and mine development to minerals production, thus integrating international expertise and modern technology from global investors, he said.

The broader goal of the partnership is to ensure that Tanzanians acquire new skills and technological knowledge by involving local professionals in the technical aspects of the project, he said.

The country will retain the capacity to sustainably develop the sector even after international investors conclude their operations, he said, urging the firm to strictly comply with environmental protection regulations.

The government will closely monitor the project to ensure it delivers promised benefits as potential economic implications for the region are substantial, he stated, with. Plantcor (T) representative Deogratius Kumalija projecting that the project will generate up to 20,000 jobs. The vast majority of these positions will be filled by Tanzanians, as foreign personnel would only be required for highly specialized operational roles he said, elaborating that beyond direct employment, the project is expected to stimulate money circulation in local communities through increased supply demand.

These cover needs for food services, accommodation, transport and other essentials, he affirmed, while Regional Commissioner Martin Shigella echoed these sentiments, stating that the investment would create vital opportunities for youth in Bukombe and the wider Geita region. 

Dr Doto Biteko, the Bukombe MP, said that the investment would help small-scale miners by improving general mining technology and reducing exploration costs in the area. Local residents to prepare for an economic shift by engaging in hospitality and similar business ventures, he urged.

Simon Sirro, the STAMICO board chairman, said that the prospective transformation of Kigosi area is particularly significant, transiting from a location once plagued by security challenges and crime to one that is now attracting multi-billion-shilling investments. 

He credited government and security agencies for improving safety, which paved the way for this industrial development, while the STAMICO managing director, Venance Mwasse, noted that institutional participation ensures Tanzania benefits well beyond earning royalties. 

By being an active shareholder the government gains access to reliable data for planning and decision-making, enabling the formulation of laws and policies that effectively balance public and private sector interests, ensuring a sustainable future for the nation's non-renewable resources, he added.