KAGERA: ARTISANAL miners of tin in Kyerwa District, Kagera Region have cited high production costs and taxes as among causes leading to increased smuggling of the minerals to a neighbouring country.
Reports from Kyerwa District said that in recent months there has been an increase of mineral smuggling cases to a neighbouring country.
“High production costs and taxes are among causes leading to smuggling of tin to a neighbouring country. We appeal for government intervention through the Tanzania Revenue Authority (TRA) to the lower tax which currently stands at about 10 per cent compared to 5 per cent in a neighbouring country,” said Mr Imani Peter from Kyerwa Trading Company (KTC).
He was presenting his views before the Presidential Tax Reform Commission (PTRC) during a joint meeting with tax stakeholders held in Bukoba Municipality.
In July, 2014 the State Mining Corporation (Stamico), through its subsidiary Kyerwa Tin Company Limited raised the price of tin per kilogramme from 12,000/- to 16,000/-, bringing new hope to artisanal miners in Kyerwa District.
Former Minister for Energy and Minerals, Professor Sospeter Muhongo was quoted as saying that days of illegal tin exports to neighbouring countries to global markets were over, thanks to Stamico’s decision to start purchasing the mineral.
“A new dawn has come and Stamico should not repeat past mistakes to occur which denied the country its rightful revenue. Effective today, Tanzania will export its own tin resources to global markets and end years of illegal trading by middlemen,” Prof Muhongo was quoted as saying.
He pointed out that neighbouring countries which capitalised on the regulator’s laxity can no longer find room to exploit artisanal tin miners by offering low prices while earning hard currency without paying a dime in taxes.
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STAMICO is a wholly government-owned Corporation, established in 1972. It has been tasked with new roles including engaging in direct mining, dealership and exploration.
Tanzania is among the countries having abundant mineral resources. These include metallic minerals, which include gold, iron ore, nickel, copper, cobalt and silver and gemstones, which include diamonds, tanzanite, ruby, garnets and peal.
Others are industrial mineral, which include limestone, soda ash, gypsum, salt and phosphates and Energy source minerals, such as coal and uranium and construction minerals, such as aggregates, gravel, sand and dimension stones.
Tanzania has a great potential particularly for gold, base metals, diamonds, ferrous minerals and a wide variety of gemstones, including the world renowned Tanzanite (blue zoisite) occurring in the Proterozoic metamorphic rocks of the Usagaran and Ubendian Systems.
Other gemstones mined in the country include ruby, rhodolite, sapphire, emerald, amethyst, chrosoprase, peridot and tourmaline.
Recently, a major alluvial occurrence was discovered in the southern region of Ruvuma, Mtwara and Lindi. Varieties include chrysoberyl, spinels, sapphire, garnets, zircons and diamonds.
