Mining Commission to curb smuggling

THE Mining Commission of Tanzania is implementing a new strategy to further tighten its grip on mineral smuggling

DAR ES SALAAM: THE Mining Commission of Tanzania is implementing a new strategy to further tighten its grip on mineral smuggling, with a focus on improved packaging and increased support for small-scale miners.

These developments were announced at the just ended 48th Dar es Salaam International Trade Fair (DITF).

Laboratory Technologist with the Commission, Aloyce Bwana revealed plans to introduce uniform packaging across all mineral markets nationwide.

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This initiative, beginning in the 2024/2025 fiscal year, aims to curb the activities of dishonest traders who exploit inconsistencies in packaging to facilitate smuggling.

“Having a uniform type of packaging will help control mineral smuggling,” said Mr Bwana.

“Mineral markets have already significantly reduced the rate of smuggling, but we will continue to take stringent measures, including public education.”

A Geologist with the Commission, Baiton Mtebe, highlighted the success of mineral markets in empowering smallscale miners and bolstering government revenue.

Established to provide miners with a reliable marketplace for their extracted minerals, the markets have seen a significant rise in small-scale miner contributions, from 5 per cent to 40 per cent of total revenue in the 2022/2023 fiscal year.

Mr Mtebe said the additional benefits of mineral markets include fostering healthy competition among traders and further reduce smuggling attempts.

There are currently 42 mineral markets and 102 mineral buying centres operating across Tanzania.

Another Commission representative, Engineer Daniel Mdachi provided valuable insights on mining and mineral trading licences.

He insisted on the importance of adhering to the Mining Act (Chapter 123) for all applicants to avoid disqualification.

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Eng Mdachi clarified the various licence categories available, ranging from small-scale mining (exclusive to Tanzanians) to large-scale mining and mineral processing.

For medium and large-scale mining licences, additional documentation is required, including environmental impact assessments, feasibility studies, plans for Tanzanian involvement, compensation and resettlement plans and proof of financial and technical expertise.

Trading licences are also categorised as small-scale (Brokers) and large-scale (Dealers). Like small-scale mining licences, Broker licences are exclusively issued to Tanzanian citizens.

Dealer licences, however, can be obtained by local companies or joint ventures with a minimum 25 per cent local ownership stake.

The validity of all trading licences is one year, running from July 1 to June 30 of the following year.

During DITF, the Commission used the opportunity to assist with online licence application registration, aiming to streamline the process for aspiring miners and traders.

The process and requirements for obtaining a mining licence in Tanzania for individual applicants must be at least 18 years old, have no history of bankruptcy and must not have defaulted on existing mineral rights.

Additionally, applicants must have a clean criminal record, with no convictions for dishonesty within the past ten years.

Foreign applicants are required to have resided in Tanzania for a minimum of four years, ensuring they are well-acquainted with the local mining regulations and environment.