M a r k e t N e w s
Magufuli Takes a Stand against Illegal Mining with Latest Reforms
Posted on : Friday, 29th September 2017
The latest squabble between the Tanzanian government and its mining sector has led President Magufuli to request the central bank to purchase precious stones, in an attempt to boost the nation’s reserves. This is the latest in the escalating row between the two, over alleged tax evasion from the mining sector.
The president released a statement saying, “All the minerals will be controlled and will pass through one gate and he (Magufuli) ordered the (central) Bank of Tanzania to take part in the tanzanite buying trade,”.
A parliamentary inquiry team said that it had uncovered massive smuggling of the blue-violet tanzanite gemstone, found only in the East African nation.
President Magufuli has gone as far as, mandating the military to open checkpoints and install cameras around the tanzanite mining areas to keep a watchful eye over possible illegal activities.
“Even if someone ingests some tanzanite gemstones, they will be detected at the proposed checkpoint,” Magufuli said.
Magufuli expressed his outrage at Tanzania receiving only a 5% cut of mining revenues, as all the rest of the revenue goes straight into the economies of other nations.
“We recommended that a perimeter wall should be built and the tanzanite mines should be declared as a controlled area, since 2002, to curb smuggling and government revenue loss,” said a renowned tanzanite mining trader by the name of Mollel.
He thinks that this step will assure buyer from the USA and other nations about the stones have gone through due process and are legally traded.
Tanzania revamped the mining sector in July by changing the legal, regulatory and fiscal frameworks of the sector. A move that sent stock prices plunging immediately.
Source : bizmap
