The terms of reference include establishing miners and dealers were paying government taxes considering trade in tanzanite earns very little revenue for the Government.
The Tanzanian parliament has instituted yet another investigation into how much revenue tanzanite, a unique gemstone only found in the country, contributes to the coffers. National Assembly Speaker Job Ndugai has formed a special committee of nine MPs to scrutinise tanzanite mining contracts and exports. “The team led by the chairman of the parliamentary Committee for energy and minerals Doto Biteko, has been tasked to look broadly at the tanzanite business, including contracts signed between state enterprises and private firms,” Mr Ndugai told The EastAfrican.
Terms of reference He said their terms of reference include establishing miners and dealers were paying government taxes considering trade in tanzanite earns very little revenue for the Government. Tanzanite is a popular blue gemstone of the zoisite family that is only found and produced commercially in one small area of northern Tanzania. “We want them to propose a way forward because it appears everyone in the sector — miners and dealers on the one hand and government on the other — is complaining,” said Mr Ndugai.
Suggestions The Speaker said that the team should come up with suggestions on the best way to export tanzanite “whether it should be in raw form or cut and polished in a regulated atmosphere because even countries that do not mine tanzanite like South Africa and Kenya, also export the gemstone that is only found at Mirerani, Arusha.”
Mr Ndugai added: “Remember tanzanite is more expensive than gold.”
This is the third committee formed within two months to probe the workings of the mining sector.
Two others were formed by President John Magufuli and one committee’s reports has been presented to the head of state.
A Tanzanian is allowed to invite a strategic investor possessing the requisite technology and financial power for a joint venture.
It further states that before allowing the joint venture, the minister for energy and minerals must discuss the matter with the Mining Advisory Board. The board was launched in 2012 to assist the government implement mining activities when negotiating and signing contracts.
