TANZANITE ONE MINING COMPANY AGREES TO COMPENSATE TANZANIAN GOVT FOR UNPAID TAXES

DARE-ES-SALAAM-- Tanzanite One Mining Company, the only company authorised to exploit the blue gemstone, Tanzanite, in Tanzania, the only known source of the stones, has agreed to compensate and pay all taxes it owes the government, after conceding that there have been some malpractices in its operations in the country.

Professor Palamagamba Kabudi, the chairman of the government negotiating committee appointed by President John Magufuli,and a Director of Tanzanite One, Faisal Juma, signed the payment agreement in Dar es Salaam on Wednesday.

Tanzanite is a blue and violet variety of the mineral zoisite belonging to the epidote group which was discovered in the Merelani Hills of Manyara Region (Province) of Northern Tanzania in 1967, near Mount Kilimanjaro. Tanzanite is only found in Tanzania, in a very small mining area near the Mirerani Hills.

Speaking after signing agreement, Prof Kabudi, who is the Legal and Constitutional Affairs Minister, said Tanzanite One had agreed to compensate the government after being satisfied that initially there were improper issues whichj had caused loss to the government.

The compensation, which he did not quantify, will be paid in installments, with the first payment, excluding taxes, to be made within two week, he said, adding that the company will equally be required to pay all taxes it owes the government.

The minister said Tanzanite One had agreed to honour all legal obligations enshrined in the Mining Act, 2010, which clearly states that only Tanzanians are allowed to carry out mining operations on gemstones and that foreigners can only be allowed if Tanzanians are incapable of doing that.

Source: NAM NEWS NETWORK