Majaliwa launches Geita bullion market

18Mar 2019
The Guardian Reporter
GEITA
The Guardian
Majaliwa launches Geita bullion market

PRIME Minister Kassim Majaliwa yesterday said that the government will take punitive measures against smugglers of the country’s minerals.

He made the remarks at the official launch of the gold bullion market in Geita.

The launch of the market is in line with President John Magufuli's latest directive to ensure that Tanzania takes a lead in the international gold business.

Majaliwa said that the government will not tolerate anyone taking the yellow metal across borders in search of higher prices.

He pointed out that security has been enhanced to control minerals smuggling, to make sure that every Tanzanian benefits with our endowed natural resources.

The premier said the law is very clear as it requires anyone seeking to carry such goods (minerals) outside the country to obtain permits, hence going against that the law invites measures for the law to take its course. 

He reminded security organs to ensure that the new minerals market is guarded all the time, urging other regions with intense minerals production to establish similar markets.

The premier also asked responsible ministries to ensure the minerals market is smoothly managed for the benefit of the minerals sector in the country.

Geita Regional Commissioner Robert Gabriel, said the newly launched international gold bullion market outfit is expected to boost earnings of small scale miners in gold extraction as well as optimise government revenues.

Records of the Federation of Miners Association of Tanzania (FEMATA) indicate that there are more than six million small scale miners across the country.

The report also reveals that an estimated 40.5 million people were in direct engagement with artisanal and small-scale mining in 2017, up from 30 million in 2014, 13 million in 1999 and six million six years earlier.

Just last month, President John Magufuli held talks with mining sector stakeholders, with the major agenda being to devise solutions to alleviate their grievances.

The meeting was also organised for the president to receive advice about the ideal strategy to employ to operate the mining sector for the benefit of Tanzania and its people.

The outcomes of the forum led the United Republic to endorse a bill that removed the payment of 5 percent withholding tax and 18 percent value added tax which small-scale miners were previously mandated to pay.

There are five districts in Geita Region, namely Mbogwe, Kahama Rural, Kahama Urban, Bukombe, Chato and Geita.

Each of these districts will have a centre for gold collection from small-scale miners alongside two banks where gold traded will be held for safe and secure transaction conducts.

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