Tanzania is to begin uranium mining and processing within three years, following the announcement of two commercial discoveries in the central and southern regions of the country.

Exploration estimates indicate the country has about 53.9 million pounds of uranium oxide (U3O8) deposits that, at current prices of $41 per pound, is worth $2.2 billion.

Two firms that have been exploring for the mineral in Tanzania and have confirmed discoveries are Mantra Resources and Uranex Resources, which are now only waiting for the new Mining Bill to be tabled this month before commencing mining.

Last week, the Proactive Investors website said Uranex, an Australian-listed company with projects in Australia and Tanzania, had announced the discovery of new uranium mineralisation during pitting at its previously untested Mbuga G site in the northern part of the Manyoni Project in central Tanzania.

In addition, further uranium mineralisation has also been identified at Mbuga’s A, C West, D, and F, including recent assays returned from the 2009 drilling campaign.

Managing director John Cottle said: “We’re very excited about these new uranium intersections as they continue to confirm our belief in the mineral potential of the Manyoni district.”

The Mining Bill is geared to create a win-win situation unlike its predecessor, the Mining Act 1998, which gave disproportionate revenue benefits to mining companies operating in the land. Both Mantra and Uranex said last week that production will begin after three years.

The coming on stream of uranium will make it the most dependable export, after gold — Tanzania is the third largest gold producer after Ghana and South Africa — which in 2009 earned the country a total of $1,076.1 million.

The mineral sector in general earned the country $111.5 million in 2009, contributing 3 per cent to the gross domestic product.

The country ultimately aims to exploit its uranium deposits to produce nuclear power to export to the East, Southern and Central African markets.

Indeed, last week, at a meeting of the Forum of Nuclear Regulatory Bodies in Africa (FNRBA), in Abuja, Nigeria, the United States pledged to help African countries interested in generating electricity from nuclear sources.

Tanzania is a member of the FNRBA, along with Congo, Egypt, Libya, Morocco, Nigeria, South Africa, Namibia, and Tunisia.

Mantra, which will mine uranium in the south of the country at Namtumbo district, Ruvuma region, expects to produce 3.7 million pounds per year worth $151.7 million, using a 1,500 strong workforce and an investment of about $400 million, according to its website.