| Ban on raw tanzanite exports sends shivers to India | Send to a friend |
| Saturday, 28 August 2010 20:43 |
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The ban on raw tanzanite gemstone exports has sent shivers to India’s second largest city of Jaipur, The Citizen has learnt. Apparently, Tanzanite, which is exclusively found in Tanzania, accounts for one-third of annual gemstone exports of Jaipur. It is estimated that nearly 250,000 people are employed in cutting and polishing the raw gem for re-export. The ban which came into force last July, aims to spur the local processing industry’s development, thereby boost the economy and realise profits. Said the minister for Energy and Minerals, Mr William Ngeleja: “We have banned the export of raw tanzanite. Dealers found going against the sanction will have their gem consignment confiscated and license nullified. And Mr Sanjay Phophalia from the United Jewellers firm based in Jaipur lamented: “The Tanzania policy has negatively affected the Jaipur gemstone manufacturing industry.” He urged the India government to talk with Tanzania authorities to help Jaipur’s predicament. The vice chairman of the Gem and Jewellery Export Promotion Council of India (GJEPC), Mr Rajiv Jain, said talks at high government levels have already been initiated. “We are trying to find the best possible solution to help the Jaipur trade,” he said. Mr Jagdish Tambi from KL Tambi & Co. of Jaipur was equally amazed that Tanzania has banned raw tanzanite exports while it has not developed enough capacity to process the gemstone locally. But the chairman of Tanzania Mineral Dealers Association (Tamida), Mr Sammy Mollel, said at the moment the country is home to 400 experts qualified in cutting and polishing tanzanite. “So far over 120 tanzanite cutting and polishing machines have been deployed in Arusha. They have a capacity of cutting and polishing a substantial amount of tanzanite produced locally,” he told The Sunday Citizen. The Tamida chief emphasised that cutting tanzanite locally would minimise smuggling, create employment for local people and make the industry contribute immensely to government coffers. In conjunction with the government, Tamida is working hard to revive gemstone exhibitions. These were held annually in the 1990s in Arusha to showcase the country’s mineral potentials. “Our intention is to bring into Tanzania potential buyers of all sorts of gemstone in the world” Mr Mollel said. It is estimated that the tanzanite gemstone, which is exclusively mined in Mererani hills in northern Tanzania, nets merely $100 million annually. Most of the finished gem is later sold on the US market realising approximately $500 million annually. Under the revised legislation, the mining of gemstones will be reserved to local people, and foreigners are required to enter into joint ventures with Tanzania nationals. It is also mandatory for mining contracts to be reviewed every five years, with specific areas set aside by the government to avert recurring conflicts with big miners, according to the law. Further, Tanzania will not issue new gemstone mining licenses to foreign companies, the law directs. However, current agreements with foreign mining companies remain unchanged and the giant mining firm, TanzaniteOne, will not be affected by the new ownership rules. Add this page to your favorite Social Bookmarking websites           |
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