Minister seeks transparency in the mineral industry

Dar es Salaam. Minerals minister Dotto Biteko has emphasised the need for escalating authenticity when small-scale and industrial mineral miners are involved in the business of their products.

Dr Biteko made the emphasis this week at the Julius Nyerere International Conference Centre (JNICC) during a two-day meeting involving small-scale miners and industrial manufacturers.

The meeting aimed at unlocking available potentials related to the use of domestic raw materials as compared to the importation of the same minerals from outside the country.

The event, co-organised by the State Mining Corporation (Stamico) and the Confederation of Tanzania Industries (CTI), was attended by other key stakeholders who were expected to play a role in providing solutions to challenges facing domestic raw material producers.

Speaking during the event, Dr Biteko said there are some small-scale miners dealing with industrial minerals who have been mixing the products with sand in order to increase the weight.

“Industrialists have suffered losses as a result of mixing extraction product with sand. Several of them even went bankrupt and shut down their businesses,” he said, noting that some of them have become less competitive in the market.

During the meeting, Mr Biteko assured small-scale miners that the government will continue addressing challenges facing them, including taxation issues.

The president of the Federation of Miners Association of Tanzania (Femata), Mr John Bina, asked the government to address a number of challenges, including the lack of reliable markets, higher taxation, inadequate capital, etc.

“The issue of value-added Added Tax (VAT) can still be used positively or negatively. This is especially true if the minerals are subject to VAT charges when they are traded locally, but nothing is charged when they are sold outside the country,” he said.

“VAT could be charged locally, but the produce could be traded at low prices to our neighbours, who double as our competitors. This will render our industries less competitive,” he added.

During the meeting, GF Truck and Equipment Company Limited, through its machinery rental company, reached an agreement with Stamico to help small-scale miners by renting extraction machinery.

GF Truck and Equipment Company Limited’s director of marketing and communications, Mr Salman Karmali, said they decided to ink the deal after discovering that many small-scale miners are unable to procure and own the said machines.

“We will be renting specialised mining machines to Stamico at low costs. Being the guardians of small-scale miners, they will easily identify those in need, something that will reduce mine accidents occurring because of using traditional methods, “said Mr Karmali.

During the event, Stamico board of directors chairman Michael Isamuhyo challenged small-scale miners to use proper mining methods in order to reduce associated risks.