Handeni. Queries have been raised over a gold mining project at Magambazi in Handeni district, Tanga region.
The mine was to start operations in October last year after the public was informed an investor to licensed to revive it. However, nothing is taking place at the site.
The district executive director William Makufwe has told this newspaper that the district council had expected to earn Sh. 25 million per month as tax revenues.
He added the investor, whom he could not name, was expected to start mining gold from last October but has since not turned up for the task.
According to him, the mine was once operational but digging of the mineral stopped about two years ago, forcing the authorities to find another investor.
"During the stoppage of one and a half years, the council llost Sh. 500 million as revenue", he said.
Councillors for the local authority said efforts should be made to have the mine operations resume so as to offer employment to people and earn money for the district.
They claimed the district authorities have not been categorical on the project, amid reports that the prospective investor had failed to meet some required conditions.
A councillor for SegeraYasiniMtamike told a recent meeting of local leaders that the public must be informed on the project because it would generate the badly needed finances and provide jobs.
Handeni district expects to spend Sh. 49 billion for recurrent expenditure and implementation of development projects during 2018/2019 financial year, according to the budget proposals endorsed by the council.