Mwanza — KABANGA Nickel Project, one of the anticipated mining projects in Ngara District, North-West Tanzania may delay following the inconclusiveness of 'critical' issues.

Reliable sources within the company said despite the fact that the Kabanga Nickel Company Ltd has completed exploration and constructed a permanent mining camp, operations were yet to commence.

The source who preferred anonymity said the delay is partly caused by the ongoing negotiations with the Tanzania government.

Constantine Kanyasu, Managing Cooperative Unions in Tanzania told East African Business Week the drilling at Kabanga would wait until the company solves pending legal and operational issues.

Although the Tanzania Environmental Management Council (NEMC) has issued a certificate there were still two pending issues-the mining license and the Mining Development Agreement (MDA).

"I hope after these two pending issues are settled, the government would now start the process of buying shares," he said adding that that would also give room to compensate those who were affected by the project.

In August, 2013 President Jakaya Kikwete said the Kabanga Nickel Project will start operations soon.

Minister for Energy, Sospeter Muhongo said the government would buy shares to be sold to the public.

Early this year Muhongo reiterated government's position but as of last week Tanzania government was yet to buy shares.

In August, 2013, Muhongo, had said implementation of the Kabanga Nickel Project was delayed due to logistical problems, adding that "plans had now been finalized."

Kabanga Nickel Project is about 130 km South West of Lake Victoria in Ngara District, Kagera Region. It is 58 million ton nickel mine is regarded as one of the best-undeveloped greenfield nickel sulphide deposits in the world with an investment estimated at over $200 million

Kabanga will be developed as an underground mine with expected mine life of more than 30 years.on for the period of July 2013 to February 2014, which a 13.3% increase compared to the same period last financial year. However, this is still Ush270b short of the Ush5.5trillion they should have mobilized.

At the half way mark, the revenue body was Ush247 short of their half year target.

However, the officials are still adamant they will be able to minimize the deficit by the end of the financial year.

They point to initiatives such as Asycuda World, the SCT and the Electronic Cargo Tracking that will be rolled out on May 2, 2014 as some of the measures that will help reduce the huge deficit.

Kamajugo says following the implementation of the SCT clearance procedures on petroleum products, the process is being extended to other products such as neutral spirit, cigarettes and cement between Uganda and Kenya beginning this April. It will also be extended to trade in cement and products from Mukwano Industries between Uganda and Rwanda.

• [Editor:Juan]