By Alfred Zacharia
In
a significant development, the Minister of Minerals, Hon. Anthony Mavunde,
announced that Tanzania's mineral sector has achieved record-breaking revenue
collections, reaching Sh 753 billion in the fiscal year 2023/2024. This
achievement marks a substantial increase from the previous year's collections
and underscores the growing contribution of the mining sector to the national
economy.
Minister
Mavunde, speaking in Dodoma on July 28, 2024, highlighted that the Ministry of
Minerals, through the Mining Commission, had initially set a target to collect
Sh 882.121 billion from various sources, including royalties, annual license
fees, inspection fees, geological fees, laboratory service charges, and various
penalties.
The
actual collection of Sh 753.815 billion represents 85.45% of the target,
indicating a robust performance in the sector.
"This
collection is an increase of Sh 76.080 billion compared to the Sh 677.734
billion collected in the 2022/2023 fiscal year," Mavunde noted,
emphasizing the sector's positive trajectory. He pointed out that from the
fiscal year 2019/2020 to 2023/2024, revenue collections have consistently increased,
instilling confidence in achieving the ambitious target of Sh 999.998 billion
for the 2024/2025 fiscal year.
Mavunde announced a crackdown on informal
agreements that allow foreigners to operate under these licenses without proper
authorization. He stressed that while the law permits foreign technical
assistance under certain conditions, such agreements must be approved by the
Mining Commission to ensure compliance and protect local interests.
Minister
Mavunde expressed concern over the negative impacts of unauthorized foreign
involvement, which includes job losses for local miners and the depletion of
invested capital, potentially fostering resentment towards the government.
"Severe penalties will be imposed on those who fail to comply with these
regulations," Mavunde warned, announcing special operations by Regional
Mining Officers (RMOs) to enforce the rules. He made it clear that RMOs would
be held accountable for any violations occurring in their regions.
Furthermore,
Minister Mavunde condemned fraudulent activities and mineral smuggling, which
undermine government revenue and the integrity of the mining sector. He
directed the Permanent Secretary of the Ministry of Minerals, Engineer Yahya
Samamba, to take immediate disciplinary action against dishonest officials
within the ministry.
"We have identified unethical officials
at the regional level who facilitate revenue losses. Their names will be
provided, and swift action is required. We will not tolerate such
behavior," he asserted.
In
an additional move to streamline and revitalize the sector, Mavunde revealed
that 2,648 licenses and applications have been canceled. The government plans
to reallocate these opportunities, with new openings to be announced for both
domestic and foreign investors. This reallocation aims to attract serious
investors who can contribute to the development and sustainability of the
mining industry in Tanzania.
Minister
Mavunde's announcements underscore a determined effort to ensure that the
benefits of Tanzania's mineral wealth are maximized for the nation, while also
maintaining strict adherence to legal and ethical standards in the sector. As
the government continues to implement these measures, the focus remains on
enhancing transparency, accountability, and the overall contribution of the
mining sector to Tanzania's economic growth.
