REVENUE collections
in the mining sector have soared to the current 470bn/- from an annual
average of 196bn/- in the past four years, thanks to sweeping reforms in
the lucrative industry.
Minerals Minister
Doto Biteko, speaking in an exclusive interview with an online
television- Maelezo TV-which is run by Tanzania Information Services,
attributed the great achievements to government efforts to curb cheating
in the industry, especially smuggling of minerals and gemstones.
Minister Biteko
explained that construction of the fencing wall around Mirerani
Tanzanite mine in Manyara region has enabled the government to increase
the quantity of the rare gemstone which is exclusively found in Tanzania
from just 166 kilogrammes per annum to 1.09 tons.
"As we speak, there
are over 33,000 mining licence holders in our database out of whom
13,167 have been revoked over failure to develop the mines.
These mining blocks will be redistributed to small and medium scale miners," he explained.
Among others, the
minister recorded in the past four years to establishment of mineral
trading facilities in some regions as well as incorporation of artisanal
miners who had been dismissed as illegal.
"Before the
establishment of the mining trading markets, it was hard for the
government to collect revenues while miners were also being cheated by
unscrupulous traders," he explained.
Mr Biteko explained
that the directives by President John Magufuli on the establishment of
mineral centres have made Tanzania an example not only in the East
African but in the African continent.
"The creation of
the markets has made trading of minerals and gemstone very transparent
because the government gets its fair share of revenues while miners also
receive reasonable payments for their produce," he stated.
He explained on the
other hand that construction of the fencing wall around Mirerani and
installation of Closed Circuit Television (CCTV) cameras have played an
important role in checking smuggling of Tanzanite, enabling the
government to collect its fair share of revenues.
Speaking in a
previous interview with the 'Daily News', Mr Biteko explained that the
mining licence holders had responded positively to payment of part of
permit fees amounting to 116.67bn/- they owed the government on the
mining blocks they were allocated.
The minister had in
February 18, this year, instructed the Mining Commission to serve a
30-day notice to companies that own 18,341 mining licenses to pay the
arrears or risk losing their licenses.
"Some of the licence holders have requested for an extension of the deadline to make payments.
As of March this
year, we have revoked licenses of 11 companies which failed to pay for
their licence," he then explained during the interview.
According to the
minister, the Mining Commission had issued 30,973 mining licences out of
which 18,341 had not paid fees amounting to 116.67bn/-.
A verification
conducted by the Ministry of Energy in February, according to Mr Biteko,
found out that the defaulters had already been served with defaulting
notices but the permits had not been revoked as prescribed by the law.
Giving breakdown on
the amount of money that the government claims from each licence
category with the amount in brackets, the minister mentioned prospecting
licenses (61.67bn/-), special mining licenses (6.41bn/-), mining
licenses (28.28bn) and primary mining licenses (19.51bn/-).
Mr Biteko had
argued that since the Mining Commission had served the defaulters notice
to 110 prospecting licence and 52 mining licence holders, their
licenses should be withdrawn in seven days.
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