Thursday, July 6, 2017

Mining sector clean-up takes shape

DAILY NEWS Reporter
  • Govt freezes issuance of extraction agreements
  • Bunge forms team to study diamond digging
PRESIDENT John Magufuli has ordered immediate shelving of new Mining Development Agreements (MDAs) issuance to mining investors until the government carefully and strictly scrutinises their economic advantages and impacts.
And Speaker of the National Assembly, Mr Job Ndugai yesterday announced formation of a special nine member team to assess diamond mining activities in the country.
The team will start its work effective July 10, this year and has 30 days to accomplish the activity. Dr Magufuli who was briefly speaking to a section of Geita residents, mainly members of the small-scale mining community undertaking their activities in different parts of the region, said he had also ordered for small-scale miners to continue with their activities while the state reviews mining practices governing the entire sector.
He said that he had directed the Commissioner of Mines and the entire Ministry of Energy and Minerals to embark on fresh modus operandi pertaining issuance of mining development contracts, while fully informed of the total mineral resources foreign investors are invited to dig in the first place.
“We need to carry out thorough scrutiny of the total value of our mineral resources first before giving the green light to foreign investors to dig them. Suppose the estimated value of our mineral resources is 400tril/-, let us know their incurred investment costs and then talk of a win-win agreement,” said the President.
Elaborating, the Head of State said the country needs to be well prepared to counter all tricks by investors, who should be made aware of clear demarcations between their rights and that of the nation, before the line is ultimately drawn, leaving every part satisfied on the sealed deal.
Time has come, the President reiterated, where the country should garner substantially, equitably and profitably from its precious resources, getting rid of irritating clauses like four per cent royalties previously agreed in the abolished outdated MDAs.
“It does not click well in mind that an investor comes here and finds us with our land and gold in it, human capital and uses our paved roads let alone enjoying lots of tax exemptions, yet we end up receiving a meagre four per cent in royalty ... we cannot repeat these mistakes again,” he said.
And in another development, Dr Magufuli warned heads of schools that they will lose jobs if it is discovered that they kept pregnant girls in school or those who dropped out for delivery and came back.
He said he seriously meant it when he ordered the ‘mothers cum students’ out of schools and warned teachers who will attempt cheating authorities in defending them.
President Magufuli challenged parents to keenly watch the movements of their children particularly girls who either freely or trickily find themselves sneaking out for deadly outings and or attending irresponsible tuition classes only to socialise with men.
He said parents must be strict in upbringing their children and they should feel well guided to behave and follow studies accordingly. He also warned Non-Governmental Organisations (NGOs) to stop advocating nasty issues.
The President noted that the government should adopt new principles that will guide children to attend school without unnecessary obstacles. On the other hand, Mr Ndugai’s move follows complaints and various reports that Tanzania was gaining less from precious minerals.
The team will be led by Ilala MP (CCM), Mr Musa Azzan Zungu. The Speaker named committee members as: Dr Immaculata Semesi Sware (Chadema), Shari Raymond (CM), Allan Kiula (CCM), Rashid Abdallah (CUF), Restituta Mbogo, Ahmaed Ngwali( CUF), Richard Ndasa (CCM) and Emmanuel Mwakasaka (CCM).
He said terms of references that will guide the team include review of various reports that were presented by previous teams formed by the government on the matter. The team will also look at the ownership, mining and regulation of the mining subsector.
Speaker Ndugai (pictured) added that the team will be required to assess the advantages and disadvantages of the current diamond extraction system. He added that the team will also identify the best practice for supervising diamond extraction and business as well as to point out any other important aspect in the subsector.
According to Mr Ndugai, the team will be assisted by the secretariat that will be formed by the Clerk of the National Assembly, Dr Thomas Kashililah. He added that the team will submit the report to his office for further action.
“This team will use at least 30 days, my office will be ready to assist whenever necessary,” he said. According to Speaker Ndugai, the team will perform its activities based in Dodoma and that his office will assist when it will be necessary for the team to travel in various parts in and outside the country.
“If need be, my office will assist the team to travel outside the country in search of required information, we want to come up with useful report on the matter,” he said.

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