Some lawmakers have raised concerns over the performance of the State Mining Corporation (Stamico) calling upon the government to dissolve it immediately.
Debating the budget of the Ministry of Minerals tabled on Thursday (31 May 2018), the MPs said the corporation failed to develop its projects and was operating at losses hence a burden to the nation.
“I wonder why you still outline the loss-making Stamico in government plans while it has proved failure. I will need explanations from the minister because this is a burden to the government,” said Mr Maftaha Nachuma (Mtwara Urban-CUF).
Mr Ajali Rashid Akibar (Newala Rural-CCM) spent his 10 minutes discussing the performance of Stamico and asked the ministry to immediately dissolve it for being a burden.
“If I were the minister, I would dissolve it today,” he said.
“You are youthful ministers with different aspirations but if you keep Stamico, you will go with it. I also ask youth not to seek advice from Stamico because they will run bankruptcy like it,” added Mr Akibar.
Mr Seif Gulamali (Manonga-CCM) went further and disclose that had a loss of Sh60 billion wondering how the government kept such a burdensome corporation.
Stamico is a government enterprise under the Ministry of Minerals established in 1972 and became operational in 1973.
The corporation runs projects like Biharamulo and Buhemba gold mine, Kiwira and Kabulo coal mines. It also has more than fifteen (15) prospecting license for different minerals which includes four (04) prospecting licences for gold; three (03) licenses for Rare Earth Elements; three (03) licenses for graphite and two (02) licenses for phosphate.
Other prospecting licenses are for Uranium, Gypsum, Feldspar and Kaolin.
“One of the concerns raised by the Parliamentary special committee to investigate mining was the performance of Stamico and MPs are against it. If there is no benefit, then we should consider abandoning it,” said Mr Hamidu Bobali (Mchinga-CUF)