FEW weeks after the overhauled mining laws became operational; the government yesterday suspended issuance of mining licences until a Mining Commission is established.
Among major changes, which have been
initiated by the law, includes dissolving the Tanzania Minerals Audit
Agency (TMAA) and all zonal mine offices.
Energy and Minerals Deputy Minister,
Prof James Mdoe revealed this in Dar es Salaam, yesterday, while
briefing journalists on the 2010 mineral law, which was amended through
the Written Law Miscellaneous Amendments Act of 2017 and is accompanied
by major changes.
“From now on wards, companies or
individuals intending to export minerals outside the country, will be
required to pay a clearing fee of one per cent of the content which has
undergone inspection and evaluation,” said Prof Mdoe.
According to the PS, this was a
transition period before the establishment of the commission, therefore,
all the roles which were performed by TMAA and the zonal mine offices,
will be carried out under the Commissioner for Minerals.
He cited such responsibilities as
collection of royalties on industrial and construction minerals,
verifying all payment vouchers and ensuring security in mines. Other
roles include supervision of mines, carrying out a review of all gold
producers’ projects and inspecting airports, ports and borders to
control flee of minerals.
In line to terminating the agency and
mine offices, the PS said all staff who worked in the offices and are
not associated with any allegation whatsoever, will continue to serve as
public servants in the ministry.
He further noted that as part of their
responsibilities, the workers will receive various payments in
accordance to the new law as well as issue extension services to
small-scale miners.
The PS went on identifying other changes
including the increase of royalties in metallic minerals such as gold,
copper and silver from four per cent to six per cent. As for diamond and
other expensive gemstones such as tanzanite, ruby and garnets, the
increase is also six per cent from the formerfive per cent.
“With the new law in place, a five per
cent of the value of minerals will be deducted as withholding tax
collected via brokers or dealers buying minerals from small-scale miners
and presented to the Tanzania Revenue Authority (TRA),” he said.
Prof Mdoe observed that several
challenges have been realised after suspending the offices as some of
the stakeholders refuse to cooperate with the remaining staff.
“I would like to call upon stakeholders
to give maximum cooperation to the staff for they are still working for
the ministry to increase effectiveness, especially in the collection of
government revenues in this transition period,” noted the PS.
He emphasised that the former TMAA and
zonal mine offices staff will be working under the Commissioner for
Minerals, therefore, all their working tools including seals, receipt
will have the commissioner’s tittle.
After shocking revelations, which
brought the nation to a standstill, that for over a decade the nation
has been losing its revenues to dreadful mineral contracts due to bad
laws governing the sector.
Two reports from committees formed by
President John Magufuli pushed the Head of State to grant permission to
the Parliament to extend their seat ing to overhaul the laws.
This resulted in the Written Laws
(Miscellaneous Amendments) Act, 2017, the Natural Wealth and Contracts
(Review and Renegotiation of Unconscionable terms) Act, 2017 and the
Natural Wealth and Resources (Permanent Sovereignty) Act 2017, that are
now in effect.
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