Tanzania: High Taxes On Mining Firms Irk Commissioner

By Evance Ng'ingo

MINERAL Commission has been irked by high taxes charged by municipal councils to mining companies that may impact on their profitability.

This was said by the Chairman of the Commission, Prof Idris Kikula when speaking with the Coast Regional Commissioner, Engineer, Evarist Ndikilo during the three days working tour at various mineral sites in the region.

"The Commission is aware on how such levies affects the miners and is working on it," he said adding; "let me assure you that we will raise the matter to the Mineral Minister who will discuss with the Minister of Regional Administration and Local Government. Prof Kikula said his office is currently working on having the single mineral tax to be used by all the municipal councils in the country.

Throughout the visits, Prof Kikula was accompanied by the Commissioner at the Mineral Commission, Dr Athanas Macheyeke and other commission workers who among other duties had a chance to teach and share skills related to minerals.

At the Yaate Investment Company, the team spent two hours inspecting, listening as well as discussing different policies related to mining activities whereby Prof Kikula acknowledged various initiatives taken by the company in providing different social support to people living around the mining sites.

Prof Kikula further urged other small scale miners as well as big investors in mining sector to understand that they are obliged by mineral laws to support the community and it is not a favour.

"Supporting the society needs is not just a favour but it has been stated clearly in the law that the mining company has to support nearby community members and the company before offering the support it has to listen to the society needs," he said.

Meanwhile the Yaate's Managing Director, Eugen Mikongoti told the team that his mineral site offers health facilities to villagers as well as other needs depending on their demand.

Dr Macheyeki and other officials among the visited areas where Pugu Kaolin Mines Ltd, the company that has bought the Kaolin Mining cites which is the number one single deposit Kaolin mines in the word, located at Pugu.

The company's Managing Director, Robert Damian complained on the harassment his workers face from the Tanzania Forest Services (TFS) officials who have stopped them from proceeding with mining activities because it is located in the forest reserve.

At the Abbeys mining site, the Managing Director of Abbeys Construction Company, Beda Tindwa complained to Dr Macheyeki that the Kisarawe Municipal Council charges them up to 3,000/- as the levy for one tonne of the Kaolin while the required legal charge is 0.3 per cent. It is the same challenge that Dr Macheyeki faced at the Rak Kaolin Limited Company, Adam Ng'imba who is as small Kaolin miner at Kisarawe.

Dr Macheyeki asked the Pugu Kaolin Mines Company's owner to present the ownership evidence to Commission's office as soon as possible so as to get the deserved supports.

Early before the tour commence the Pwani Regional Commissioner, Ndikilo told the committee that he was not impressed with the heavy levy being charged by the Municipals and he precaution that it will affect the productivity of the mining cites something that will affect employment sectors as well.