As previously stated, Mining Alliance has been set up to be a mining support company. It will provide the necessary infrastructure to enable the land to be mined effectively. This will involve the building of compounds, purchasing and licensing the earth moving and processing plant and machinery, appointing key members of the workforce, e.g. mining engineers, security officers, and paying the wages. This will be Alliance Mining’s contribution to the joint venture arrangement.

In return, any gold recovered from the land will be sold and the proceeds split between Mining Alliance and the local concession owner on a 50:50 basis.

The first opportunity which has presented itself is at a village called Sirori Simba, about 60 miles east of Lake Victoria in northern Tanzania. Mining Alliance has signed a joint venture agreement to participate in the mining of eight concessions covering an area of 750,000 square metres.

The concessions are already being mined daily on a quasi-co-operative basis but only at surface level and on such a small scale that the gold removed is a fraction of what the land can give up. It is clear though that the gold is there, but to take full advantag the land needs to be excavated to a depth of about 25 metres which is beyond the financial means and facilities of the local populace.

Accordingly, for a relatively modest investment, the company is confident that capacity can be increased from “cottage industry” levels to around 72 kg of gold per month (US $4,952,469) within a year of the infrastructure being put in place.

This concept already has the support of John Magufuli, the President of Tanzania, and Mining Alliance anticipates that the idea will draw a lot of attention, both locally and nationally, such that other concessions will approach Mining Alliance to enter into similar joint ventures.

Obviously, the attention will also create competition as more companies seek to copy the same concept. This is not seen as a problem. Mining Alliance will already have secured first-mover advantage and, in any event, there are thousands of concessions all over Tanzania so the supply of new concessions for Mining Alliance will never be an issue.