DAR ES SALAAM – Tanzania said on Wednesday it had awarded licenses for the construction of a mineral smelter and two gold refineries to Chinese firms, as part of government efforts to generate more revenues from the nation’s mining industry.<\/p>\n
Minerals Minister Doto Biteko said the Chinese companies would also soon be awarded licenses for mines, each of which would require investment worth more than $100 million.<\/p>\n
He did not name the firms or give details about the mining or other projects in the East African nation, Africa’s fourth-biggest gold producer after South Africa, Ghana and Mali.<\/p>\n
President John Magufuli banned the export of mineral sand in March 2017, a concentrate that contains silver, copper, gold and other minerals, sparking a $190 billion tax dispute with Acacia Mining, which already has mining operations in Tanzania.<\/p>\n
The government invited bids from mining firms to build smelters and refineries, although Tanzania’s chamber of mines has said such projects would not be economical.<\/p>\n
Biteko said 37 Chinese companies had expressed interest.<\/p>\n
“After carefully assessing the financial capability and history of those companies, we have issued licenses for the construction of two gold refineries and a smelter,” he said.<\/p>\n
“We will also soon award special mining licenses to two companies to build large-scale mines whose individual investment is above $100 million,” he added.<\/p>\n
He was speaking in a televised address at a ceremony in Dar es Salaam at which the Kenyan authorities handed back 35kg of gold it intercepted after it was smuggled out of Tanzania.<\/p>\n
The government said it had set up 28 mineral trading centers since March to improve revenue collection from small-scale miners.<\/p>\n
“Gold worth a total of 136.7 billion Tanzanian shillings [$60 million] has been traded through the new mineral centers since March and the government has collected 7.7 billion shillings royalty and clearance fees,” Biteko said.<\/p>\n
Illegal trade<\/p>\n
Small-scale miners produce around 20 tons of gold a year but 90% is illegally exported, a parliamentary report said.<\/p>\n
Magufuli said revenue collection from mining had increased over the past two years after his government tightened controls.<\/p>\n
The government collected 301 billion shillings in mining revenue in the 2017\/2018 fiscal year, a figure that rose to 310 billion shillings in 2018\/2019. It aims to collect 470 billion shillings in 2019\/2020.<\/p>\n
“African countries have not been benefiting from their natural resource wealth, including minerals. Our minerals have been stolen through smuggling or through exploitative mining contracts,” Magufuli said.<\/p>\n
Gold exports are a key source of foreign exchange for Tanzania, which exported gold worth $1.549 billion last year, up from $1.541 billion in 2017, central bank data shows.<\/p>\n<\/p>\n
Source: Voice of America<\/p><\/p>\n","protected":false},"excerpt":{"rendered":"
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