12 Tanzanite firms face axe

DAILY NEWS Reporter

. . . Another huge, better gemstone auction looms

THE government’s axe is expected to fall on twelve Tanzanite mining firms operating at Mirerani for their failure to pay taxes and other government dues as plans for a bigger and better minerals’ mart are underway.

The warning was issued yesterday after it came out that some Tanzanite mining companies operating at Mirerani in Simanjiro District, Manyara Region, have deliberately failed to pay tax and other dues payable to the government.

“Twelve Tanzanite mining companies owe government 3bn/-. Failure to settle this debt the Ministry for Minerals will have no option but to revoke their business licences,” Manyara Regional Commissioner (RC), Alexander Mnyeti, warned yesterday, as he was speaking to traders and owners of Tanzanite mines.

Mr Mnyeti said it was unacceptable for the government to depend on one Tanzanite mining firm - TanzaniteOne, to receive tax in the presence of other Tanzanite mining companies that have, year in year out, failed to pay their dues under the pretext of not producing.

He said it was sad to learn that despite other Tanzanite mining firms using similar technology with TanzaniteOne in extracting the gemstones, it was only TanzaniteOne that was paying taxes to the government.

“It is unfair for the government to get its dues from TanzaniteOne alone leaving other companies untaxed. We must today agree the modality of settling this debt. Mr Mnyeti told the indebted Tanzanite traders and mine owners.

He insisted that any firm that failed to settle the debt would have its mining plots taken away. “For years now, the government has been getting nothing in taxes from firms operating here by declaring that they have gained nothing.”

He added: “We formed a task force to investigate these companies and came to find out they don’t pay taxes. It is better we go back home to grow potatoes if we fail to collect government revenues.” The RC expressed his dismay at the fact that some Tanzanite mining firms have been earning much from industry, but getting away with all the earnings under the pretext of either making loss or not earning anything at all.

“When we ask them about their earnings, you hear them saying they haven’t any. I will bring the names of the mining firms that have been playing this game to your office to revoke their business licence,” Mr Mnyeti told the Commissioner of Minerals, Engineer Benjamin Mchampaka, who also attended the occasion.

After the successful maiden Tanzanite Auction, which was staged right at the Gemstones Mines in Mirerani, the government is planning an even bigger and better minerals’ mart to be held within the first four months of 2018.

Deputy Minister of Minerals, Mr Stanslaus Nyongo, stated here that the government plans to build Mirerani Mining Hills into a fully-fledged hub of gemstones business, following President John Magufuli’s directives that all transactions related to the blue gemstones must be conducted at the source.

“Mirerani will be transformed; large departmental stores, supermarkets, luxury hotels and even banks,” stated the Deputy Minister, insisting that, the future profile of Mirerani, the mining hills located in Simanjiro District of Manyara Region, should reflect the richness of the rare gemstones being extracted there.

For the first time since the rare gems were discovered at the hills in 1960s, a mineral auction was held at Naisinyai Village in Mirerani where 47,201 grams of Tanzanite gemstones worth 820,744 US dollars, equivalent to 1.84 billion/-, were auctioned.

The entire mineral consignment in the auction was produced by the State Mining Company (STAMICO)’s joint venture with Tanzanite One Limited after two other firms, Tanzanite Africa Limited and Classic Gems pulled out of the mart, citing low priced bidders.

The Chairperson of STAMICO Board of Directors, Mr Alexander Muganda expressed satisfaction that the government owned mining entity was spearheading Tanzanite transactions in Mirerani; “It was the first auction to be staged here; we hope the second one will be even better and larger,” he stated.

The Commissioner for Minerals, Engineer Benjamin Mchampaka said all the bidders during the maiden Mirerani auction were Tanzanians, indicating that local dealers were in the forefront in Gemstones Business. RC Mnyeti said it was a shame that countries being billed as top Tanzanite producers include India, South-Africa and Kenya respectively; “Despite the fact that, Tanzanite is only found and mined in Tanzania,” he lamented.

Mr Hussein Gonga is one of the TanzaniteOne Limited Directors; “For the first ever auction to be held here, suffice to say the event was successful; we are looking forward to the next auction next year,” he said.

During the previous auction held in Arusha City, last February; Tanzanite gemstones valued at more than 9.3 billion/- exchanged hands with the consignment reportedly worth over 4.2 million US dollars.