Govt mulls indicative prices for mining chemicals

THE Ministry of Minerals has advised the Government Chemist Laboratory Agency to introduce indicative prices for chemicals used in minerals processing so as to boost the contribution of the extractive industry in the country’s economy.

Elaborating, the Minister for Minerals, Dr Doto Biteko on Monday further said here that special focus should be on gold processing, because price rise in sodium cyanide has been affecting the mineral production in the country.

According to experts sodium cyanide is used to leach gold from ore and it remains the primary reagent in use for gold processing, because it allows for efficient extraction of gold from low-grade ore.

The minister made the remarks at the opening of stakeholders meeting that drew importers, suppliers, distributors and sellers of sodium cyanide, adding that since September to date, gold miners have either suspended work or run short of capital following the high price of the chemical which rose from 400,000/- per gallon to 1.2m/-.

He said there are some unscrupulous importers and dealers of sodium cyanide who take advantage of the shortage by hiking prices in order to maximise unjustified profit.

During the meeting organised by Tanzania Mining Commission, the minister said the participants will come up with deliberations on how to address the situation for the sector’s development.

“Although the prices for the chemical have tripled in the global market, some dealers  in the country  have taken advantage  of the situation  by setting unacceptable prices and this will never be tolerated,” Dr Biteko said.

Adding: “We have decided to convene this meeting and put all concerned parties under one roof  for deliberation and directive to come up with the best way of addressing the situation taking into account that gold is among the leading  country’s exports.”

In the course, he ordered chemical dealers to sell sodium cyanide as per market prices, noting that if the situation will not be controlled it will lead to the downfall of gold miners, further taking into account the fluctuation of  the precious mineral’s  prices in the world market.

In a related development, the Minister said the government strives to see the growth of the sector so as to get its revenue share and improve socio-economic wellbeing of the miners.

The minister said despite the fact that some world chemical producers have lowered production, that should be a lesson and not warrant the hiked prices.

He noted that it has come to the ministry’s attention that some
importers and dealers, who have the chemicals in stores, have decided to increase the prices.

Dr Biteko said the ministry decided to make the chemicals market operate freely, but some operators have failed to observe the rules of the game, forcing the government to control the prices for the growth of the mining sector.

Speaking during the event, Acting Chief Government Chemist, Mr Daniel Ndiyo said they will not hesitate to cancel licences of chemical importers and distributors, who hold back the government’s efforts to promote the growth of extractive industry.