AfricaPress-Tanzania: The government has collected a whopping 479.45bn/- in revenue from the mining sector as of May 31, this year, thanks to ongoing reforms undertaken by the fifth phase government.
Speaking during an online TV programme hosted by Tanzania Information Services (MAELEZO), Chief Government Spokesperson Dr Hassan Abbasi, said the government had planned to collect 470bn/- from the mining sector in 2019/2020 but ongoing reforms have enabled the collections to reach 479.45bn/- as of May, 31, a month before the end of the financial year.
“As Tanzanians, we must reflect on the reforms undertaken by President Magufuli in the mining sector.
For instance, we had planned to collect 470bn/- in 2019/2020 but a month before the financial year comes to an end, a total of 479.45bn/- has already been collected,” Dr Abbasi said.
Simple mathematics shows the government has already surpassed its collection target from the sector by close to two percent.
“Some critics raised their voices on the reforms in the sector, some going far to predict that the drastic restructuring might end up dragging the government to court.
Today, Tanzanians speak a different language as President John Magufuli has proved them wrong,” Dr Abbasi said.
Dr Abbasi, who doubles as Permanent Secretary in the Ministry of Information, Culture, Arts and Sports, said the government would continue to undertake reforms in the sector to ensure the country’s resources benefit Tanzanians.
He said given the government’s resolve to inject sanity into the sector, no stone would be left unturned until all contracts are reviewed in the spirit of adhering to the principle of win-win situation.
Giving examples of the benefits that the reforms being undertaken by President Magufuli have started bringing to the country, Dr Abbasi revisited the new development that unfolded just weeks ago when Barrick GoldCorporation paid 100m USD –the first tranche of the 300m USD settlement the Canadian mining firm agreed with Tanzania to resolve the disputes it inherited from Acacia Mining.
The upfront payment cheque was received by Finance and Planning Minister Dr Philip Mpango from Mr Hilaire Diarra, the Barrick Gold Corporation Country Manager.
Dr Mpango said the parties had also agreed on the payment schedule for the remaining 200m USD balance.
According to the schedule, the initial payment would be followed by five annual payments of 40m USD each.
Dr Mpango was quick to note that the 250bn/-was outside the 50/50 principle economic benefits from Bulyanhulu, Buzwagi and North Mara mines economic benefit distribution between the two parties.
The finance minister said moreover that Barrick had committed to issue 5m USD to support a feasibility study for construction of an in-country mineral concentrate beneficiation facility (smelter).
Others are establishment of a partnership with University of Dar es Salaam of 10m USD over a ten year period for training relevant staff for the mining industry.
On top of that, Barrick will inject 40m USD to upgrade the road between Bulyanhulu and Mwanza and construct a housing compound and related infrastructure.
“Let me make it clear to my fellow Tanzanians that no one has been and will be taken to any trade or investment settlement body over these reforms,” Dr Abassi said during the programme.
He said reforms undertaken are aimed at benefiting the public instead being a curse.
To increase its fair share in all minerals owned by Barrick Gold Corporation in the country, at the end of last year the Canadian firm agreed with Tanzania to form a joint company, Twiga Minerals Corporation, to replace Acacia Mining.
Other reforms undertaken by President Magufuli in the mining sector include establishing mineral auctioning centres in all regions, a decision that is proving to be beneficial to the country.
