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Assignment Presentation Wednesday 17 February 2010 Group 4 Non-Energy Minerals: Question 1. • There are three major components of minerals of the modern world economy: 1.1 Energy minerals • These include Coal, Gas, and Uranium 2.2 Metallic Minerals • There three categories namely Ferrous Metals, Precious metals and Base Metals • Ferrous metals include, niobium, terrarium, 2 • Precious metals include: Gold, Platinum, Silver and; • Base metals include: Bauxite, aluminium, cobalt, copper, lead, magnesium, zinc, nickel, molybdenum 1.3 Non – Metallic Minerals • These are Construction minerals, industrial minerals, precious stones. • Construction minerals (brick, stones, cement, clay, crushed rock, sand) • Industrial minerals (kaolin, magnesium, salt, sulphur, potash) • Precious stones (Diamonds, Tanzanite and other gemstones) 3 Question 2: • The main obstacles in increasing the degree of processing for export include:- • lack of specialized technology, for example in Gold refinery plants where 7 stages are involved, after the 5th stage you really need to negotiate with gurus in Gold refinery to get the highly sophisticated technology needed to process gold to final consumable product such as rings, necklaces, bungles etc. • Jewellery markets are controlled by a few large companies so there is a difficulty in penetrating these markets so as to sell to the end user. • Lack of huge capital needed to set up plants for further processing of minerals. • The fact that mining companies are backed by strong governments confirms the need for high diplomacy in negotiating a better deal. 4 • Among the feasible approaches in complementing the mining policy framework in place include:- • Require all mining companies to buy at least 20% of their capital investment locally • Invest on Refineries as a matter of principle, then require all miners to refine their precious metals locally before export • Require all natural resource based investments to have at least 30% local sharing as a matter of principle and create a systematic system to share them to a wider public. • Create incubation funds to develop skills in key sectors and industries such as a natural resources • Strengthen local institutions to be the primary drive for strategic investments with ability to enter into share agreements with private investors (for TZ:TIC, TPDC,NDC) 5 • Invest in exploration so as to increase ownership of quantity and quality of natural resources • Postponement of mining until the nation is able to negotiate a better deal in world markets • In our understanding, ways to overcome the challenges of further minerals processing leave a lot to be desired.
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