A small-scale miner at work
DAR ES SALAAM, Aug 15 (NNN-AGENCIES) — Tanzania’s gemstones production increased nearly nine-fold in the last four years – and the government attributes the trend to a vastly improved mining environment.
Gemstones production increased to 23,564.5 tonnes last year, from the 2,554.9 tonnes recorded in 2016. this is according to the latest data by the National Bureau of Statistics (NBS).
The Minister for Minerals, Doto Biteko, said that the increase in gemstones production was due to the favourable environment that is currently in place in the mining industry which is now attracting more small-scale miners.
“Strict control of mineral smuggling has also helped a lot as small-scale miners now see the value of regulated mining, and the government’s plan is to strengthen this so that more people can engage in mining,” he said.
He also attributed the trend to the removal of value-added tax and withholding tax on some minerals.
Biteko said production was low in previous years because miners were harassed, an unfriendly tax regime and rampant smuggling of minerals – all of which discouraged investments in the sector.
He said the government expects to increase mineral production in the coming years due to a number of mechanisms that have been put in place by the government in improving the sector. He mentioned some of them as improving the Tanzania Gemological Centre (TGC).
He explained further that the government has put in place a plan to bolster the Gemological Centre in training students on how to add value to gemstones, including polishing them.
“By doing so, it will help increase employment – and also give our gemstones a higher value in the market.”
The Minister was recently quoted as saying that the decline in tanzanite production was partly due to price volatility. But its price is now picking up as the world continues to lift lockdowns and logistical restrictions against the Covid-10 pandemic.
“You know the price of Tanzanite dropped due to Covid-19 and many shops were closed but now the World has decided to live with the disease.” — NNN-AGENCIES
