Miners in Tanzania on Thursday appealed to the government to lift the ban on exports of all concentrates and ore metallic minerals.
A statement issued by Ami Mpungwe, Chairman for Tanzania Chamber of Minerals and Energy (TCME), said some mining companies faced imminent closure under the ban due to loss of revenues from the sale of concentrates.
“This negative development will also adversely affect the government’s revenue collection targets,” said Mpungwe.
Earlier this month, Tanzanian President John Magufuli through the Ministry of Energy and Minerals banned the export of unprocessed metallic mineral concentrates and ores such as gold, copper, nickel and silver.
The ministry said the move was aimed at ensuring mineral value-addition activities be carried out within the East African country.
“Mineral value addition activities will provide employment opportunities, revenues and technology transfer, hence more benefits to the nation,” said the ministry in a statement.
But Mpungwe said Thursday the ban would significantly reduce taxes and royalties collected by the government from the mining sector.
The ministry said all companies and individuals that were exporting concentrates and mineral ores to foreign countries for beneficiation, including processing, smelting or refining, should stop immediately, and start doing such activities within the country.
It added that the government would provide necessary support to stakeholders involved in mineral beneficiation activities within the country, particularly the smelting and refining of minerals.
Major companies that have been affected by the ban include AngloGold Ashanti, Africa’s largest gold miner, and Acacia Mining that could be significantly impacted considering that nearly 30 percent of its revenue come from Tanzania. Enditem