Dar es Salaam, Tanzania — MININGREVIEW.COM — 19 January 2012 – More international firms are eying uranium mining in Tanzania despite worries and concern from the Tanzanian general public, international environmental NGOs and western capitals over mining repercussions that could come with this activity.
In the latest development, two mining firms “’ East Africa Resources Limited and Korea Resources Corporation (KORES) “’ entered into US$3.5 million investment pact that will see the development of the Mkuju river project.
“This agreement will accelerate the immediate exploration programmes and the acquisition of the mining licence at Mkuju south,” said East Africa Resources chairman and CEO Louis Coetzee in a statement.
He confirmed that KORES had agreed to invest US$3.5 million over two years for a 50% stake in the Mkuju South uranium project.
KORES will now commit to investing US$2 million to satisfy work obligations and expenditure requirements during an initial exploration programme for Mkuju South, to be undertaken within the next 12 months. In return, it will receive a 28% stake in the project.
“KORES will then invest a further US$1.5 million to fund a second exploration programme during the following 12 months. Its share of the project will then increase to 50%,” said Coetzee.
In addition to its shareholding in Mkuju South, KORES will earn the right to buy up to 100% of the uranium subsequently produced at the project. “The terms of those sales have yet to be agreed upon by KORES and East Africa Resources,” he added, explaining that the agreement with KORES was an important step in the company’s growth, due to the fact that it provided funds for immediate term exploration programmes.