SHANDONG Gold Group, Shanghai Stock Exchange listed firm, is eyeing to enter the country’s mining sector through Shanta Gold.
The Asia giant gold firm, according to sources, is in prospect talks with Shanta Gold, which operates New Luika Gold Mine in Songwe District, Songwe Region and about to start mining at Singida Gold.
The sources said the senior officials of Shandong Group, with a market capitalisation of more than 23tri/-, visited the country a few months ago as part of the said talks.
The presence of the discussions between the two companies underpins the significant improvements in the business environment that the current administration has made under President Samia Suluhu Hassan.
“Tanzania catching the eyes of these world’s conglomerates is a pride on its improved investment climate,”the source said.
Shandong has more than 16,000 employees around its global operations.
In Africa, last March the gold miner acquired a hundred per cent of Ghanaian mine Cardinal Resource Limited through a lucrative offer making its first investment in the continent. Shandong is a Chinese state-owned miner.
In one of their statements during the acquisition of the Ghana interests captured by the Mining Review Africa, the Chairman of Shandong Gold expressed commitment to build on the positive track record and reputation as they expand their business in Ghana.
The production of Shanta’s New Luika mine commenced in 2012 and the current reserve life was extended from 2021 to 2026. New Luika is an Open Pit and underground mining operation and employs approximately 990 employees and contractors of which 99per cent are Tanzanians. New Luika has maintained its reputation as one of the safest gold mining operations of its peers.
While the Singida Mine production is expected to start in quarter one of next year and transforming Shanta Gold into a +100,000 oz/pa producer with a diversified resource base.
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