Illegal gold market uncovered, 14 arrested

DAR ES SALAAM: THE government has uncovered an illegal mineral trading market operating from a five-storey building on Jamhuri Street in Dar es Salaam, arresting 14 suspects and seizing gold, cash and equipment allegedly used in the illicit trade.

The operation, conducted on August 7 by the National Task Force against mineral smuggling, targeted traders and facilitators buying minerals outside the government-approved trading system.

This was revealed yesterday by Minister for Minerals Anthony Mavunde during a press briefing in Dar es Salaam.

He said five of those arrested were employees of the illegal market, while the other nine were mineral sellers who had brought their minerals to the premises for sale.

Some were still awaiting payment after handing over their minerals.

“This shows that the illegal market had been organised and operated in a manner similar to the government’s formal mineral trading system,” Mr Mavunde said.

The premises have since been placed under security control as investigations continue to establish the wider network behind the operation.

Mr Mavunde said the task force seized approximately 174 grammes of minerals that remained at the premises after some had already been removed, along with equipment used to assess and process gold.

The seized equipment included two NITON DXL 800 XRF machines, weighing scales, gas cylinders, golds melting pots, gold-cleaning chemicals, gas pipes and equipment used to mould gold.

The operation also uncovered Point of Sale (POS) machines allegedly used to send and receive payments for minerals purchased from miners, as well as 54.705m/- in cash.

Mr Mavunde said preliminary investigations indicated that substantial amounts of money had been circulating through the premises in connection with mineral trading conducted outside the official system.

The task force is also pursuing another individual who reportedly arrived at the premises with minerals before leaving the area.

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“I have directed the task force to trace this person using the information we have from different border points across the country. We know this person by name based on information provided by the suspects arrested at the premises,” he said.

“We will look for and arrest him wherever he is within Tanzania. We will not stop here because these suspects will help us identify the entire network of people involved in this illegal market.”

The minister warned that the government would take action against individuals and businesses involved in establishing informal mineral markets that undermine the official trading system.

He also warned property owners to establish the nature of activities conducted by tenants before leasing out their premises.

“This is a lesson to landlords. When you rent out your property, it is important to know what activities the tenant is conducting there,” Mr Mavunde said.

He said authorities found sophisticated mineral-trading equipment installed inside the building, making it difficult during the raid to immediately establish the identity of the property owner or other individuals linked to the operation.

Mr Mavunde said the crackdown would not stop at Jamhuri Street, with authorities following leads in other parts of Dar es Salaam, including Masaki.