Kigoma North legislator Zitto Kabwe yesterday called on Energy and Minerals minister Nazir Karamagi to explain why he signed a new agreement with Barrick Gold Mine in London while the government was still reviewing all mining contracts that it is party to.

Kabwe, from the opposition Chadema, made the call when debating the Energy ministry�s 2007/08 budget estimates in the National Assembly.

He said: �President Jakaya Kikwete assured us that the government will review mining contracts.

A committee was duly established and a negotiation team appointed for the purpose and both are still working on the issue. It is sad to note that the government, through minister Karamagi, signed a new contract in London with Barrick Company to operate a mine at Buswalo. It is also shocking to learn that the contract was signed in London instead of Dar es Salaam,� Kabwe submitted.

According to the MP, the contract was signed sometime earlier this year, and was likely to encourage corruption.

He then asked that the minister explain why he signed the agreement alone before even the negotiation team had come out with recommendations on how the laws regulating mining activities in Tanzania could be revised for the good of the nation.

The legislator recalled that previously the government had 15 per cent stake in Bulyankulu Mine, which it later sold to Barrick Gold Mining. He said by the time of the sale the mine was worth 1.1 trillion/-.

�The government sold its shares to Barrick at $5m, which is equivalent to 5bn/-. It must now say why it sold the shares at that (low) price,� he stated, advising the government to be vigilant and cautious enough not to let a single company monopolise the crucial mining industry.

The MP said Barrick boasts the biggest number of mines in Tanzania with a combined excavation capacity of 650 tonnes of gold for 18 years, �which means that there will be no more gold in the respective mining areas by the time that period elapses�.

Barrick is understood to own four of the nine potential mines in the country.

There was no immediate official reaction to the MP�s remarks by the time we went to press last night.