Workers mix cement at a construction site. Kenya’s building sector is amongst the most rapidly growing, raising demand for cement. Photo/Joseph Kanyi |FILE
To
save the nation loss of billions of shillings incurred through mineral
smuggling, the government has pledged to take stern measures against the
culprits regardless of their nationality.
For good measure, the government has also deployed security officers at all border check points and airports, deputy minister of Energy and Minerals, Charles Kitwanga told the National Assembly yesterday.
Kitwanga was speaking in response to a supplementary question raised by Riziki Lulida (Special Seats, CCM) who had wanted to know the government’s stand on mineral smuggling.
The MP said almost 90 percent of mineral smuggling is done by foreigners, asking the government to take stern measures to curb the illicit trade.
The deputy minister promised that the government will continue to take firm measures against those involved in the illicit trade regardless of their nationality.
“We understand that these people (smugglers) are not tasked by their respective countries, but we will continue to take strong measures against them,” he said.
“We also have people from the Tanzania Mineral Audit Agency (TMAA) and the Tanzania Revenue Authority (TRA) who are to ensure that the government does not incur any loss due to the illicit trade,” he added.
According to TMAA, about 32 smuggling cases involving minerals worth 15.03bn/- have been reported since it introduced inspections at airports in 2012.
Earlier in her basic question, Rita Mlaki (Special Seats, CCM) had wanted to know how Tanzania has benefited from mining operations and its distribution.
In response, the deputy minister said Tanzania has benefited from gold mining operations through increased income, employment and business opportunities for local companies.
He pointed out that between the year 2000 and 2013 the government collected a total of 2.7trn/- as taxes and royalties from major gold mine companies,which was equivalent to 9.3 percent of total income of the firms.
He added that over 8,800 Tanzanians have been employed directly by the major mining companies for the past 13 years.
According to him,on average, the government’s income from mining sector stands at between 6 to 12 percent which is equal to 380bn/- annually.
Kitwanga said the mining policy of 2009 subsection 5.5 states that the government’s intention to improve mining operations, noting that the government decided to revive the State Mining Corporation (STAMICO) to enable it to operate large mines.
“Mining contributes considerably to the Tanzanian economy through employment, supplier contracts, investments, taxes and multiplier effects from business linkages to other sectors,” he explained.
The government's National Development Vision estimates that the contribution of mining in GDP will reach 10 percent by 2025.
Gold accounted for 94 percent of the country's total mineral exports in 2012, maintaining Tanzania’s position as Africa's fourth-largest producer of the precious metal.
Gold exports are ranked the country's top foreign exchange earner ahead of tourism, agriculture and manufacturing.
According to data from the Bank of Tanzania (BoT) and the Tanzania Chamber of Minerals and Energy (TCME), the mining sector now directly employs over 15,000 people, up from just 1,781 in 1997 when large-scale mining industry was making its baby steps.
Over the years the sector has in turn created thousands of jobs in other sectors. Under the multiplier effect, one job in the mining sector creates four others in other sectors of the economy.
Some of the local businesses that have directly benefitted from the mining sector include the aviation industry, hotels, telecoms, catering companies, freight forwarders, cement manufacturers, steel industry, oil companies, banks, manufacturing, information and communication technology (ICT), insurance companies, car rental companies, private security companies and other firms.
For good measure, the government has also deployed security officers at all border check points and airports, deputy minister of Energy and Minerals, Charles Kitwanga told the National Assembly yesterday.
Kitwanga was speaking in response to a supplementary question raised by Riziki Lulida (Special Seats, CCM) who had wanted to know the government’s stand on mineral smuggling.
The MP said almost 90 percent of mineral smuggling is done by foreigners, asking the government to take stern measures to curb the illicit trade.
The deputy minister promised that the government will continue to take firm measures against those involved in the illicit trade regardless of their nationality.
“We understand that these people (smugglers) are not tasked by their respective countries, but we will continue to take strong measures against them,” he said.
“We also have people from the Tanzania Mineral Audit Agency (TMAA) and the Tanzania Revenue Authority (TRA) who are to ensure that the government does not incur any loss due to the illicit trade,” he added.
According to TMAA, about 32 smuggling cases involving minerals worth 15.03bn/- have been reported since it introduced inspections at airports in 2012.
Earlier in her basic question, Rita Mlaki (Special Seats, CCM) had wanted to know how Tanzania has benefited from mining operations and its distribution.
In response, the deputy minister said Tanzania has benefited from gold mining operations through increased income, employment and business opportunities for local companies.
He pointed out that between the year 2000 and 2013 the government collected a total of 2.7trn/- as taxes and royalties from major gold mine companies,which was equivalent to 9.3 percent of total income of the firms.
He added that over 8,800 Tanzanians have been employed directly by the major mining companies for the past 13 years.
According to him,on average, the government’s income from mining sector stands at between 6 to 12 percent which is equal to 380bn/- annually.
Kitwanga said the mining policy of 2009 subsection 5.5 states that the government’s intention to improve mining operations, noting that the government decided to revive the State Mining Corporation (STAMICO) to enable it to operate large mines.
“Mining contributes considerably to the Tanzanian economy through employment, supplier contracts, investments, taxes and multiplier effects from business linkages to other sectors,” he explained.
The government's National Development Vision estimates that the contribution of mining in GDP will reach 10 percent by 2025.
Gold accounted for 94 percent of the country's total mineral exports in 2012, maintaining Tanzania’s position as Africa's fourth-largest producer of the precious metal.
Gold exports are ranked the country's top foreign exchange earner ahead of tourism, agriculture and manufacturing.
According to data from the Bank of Tanzania (BoT) and the Tanzania Chamber of Minerals and Energy (TCME), the mining sector now directly employs over 15,000 people, up from just 1,781 in 1997 when large-scale mining industry was making its baby steps.
Over the years the sector has in turn created thousands of jobs in other sectors. Under the multiplier effect, one job in the mining sector creates four others in other sectors of the economy.
Some of the local businesses that have directly benefitted from the mining sector include the aviation industry, hotels, telecoms, catering companies, freight forwarders, cement manufacturers, steel industry, oil companies, banks, manufacturing, information and communication technology (ICT), insurance companies, car rental companies, private security companies and other firms.
SOURCE:
THE GUARDIAN
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