‘Cover-up’ uncovered

Among its key findings, the probe team led by Prof Abdulrahman Mruma reported that the containers impounded at the port had real minerals worth 1.339trn/- in total, which had not been declared for taxation or recorded by the Tanzania Mineral Audit Agency (TMAA).

TANZANIA’s mining industry appears to have been literally turned on its head in the wake of yesterday’s stunning revelation that well over 1 trillion/- worth of gold, copper and other authentic gemstones were found in just 277 containers impounded at the port of Dar es Salaam in March this year with loads with mineral sand ready to be shipped abroad for processing.

The findings are contained in a much-awaited report compiled by a committee of experts appointed by President John Magufuli in March this year to verify the actual amount of real minerals in the ‘sand’ – otherwise known as gold-copper concentrate ores – stored in the containers.

The committee’s report delivered to the president at State House yesterday revealed stark details that appeared to confirm earlier widespread fears that the country has for years been duped big time on the true quantity, amount and value of real minerals in mineral concentrate ores being exported by the big mining companies for smelting purposes.

Among its key findings, the probe team led by Prof Abdulrahman Mruma reported that the containers impounded at the port had real minerals worth 1.339trn/- in total, which had not been declared for taxation or recorded by the Tanzania Mineral Audit Agency (TMAA).

“The government therefore has not seen a single cent in terms of tax from these minerals,” the report said.

It added that the minerals found in the concentrates and not declared for taxation included real gold, silver, copper, metal and sulphur, plus other strategic minerals such as helium, nicon, zinc, lithium and ledium.

According to the report, the strategic minerals alone from sampled containers were valued at between 129.5bn/- and 261.5bn/-.

“The copper found was worth up to 23.3bn/-, contrary to TMAA records showing that it was worth just 13bn/-,” the report indicated.

The breakdown on the verified value of the minerals in the containers is as follows: gold 2.1bn/- (compared to TMAA’s estimate of 1bn/-), sulphur 1.9bn/-, and metal 2.3bn/-.

The probe team also found that TMAA had not put any marks to indicate the type of minerals in each container as they were being sealed after samples were taken.

“This raises the question that there might be some tampering with the weight and contents of such containers without the government’s knowledge,” said Prof Mruma, who is chief executive officer of the Geological Survey of Tanzania (GST), when presenting a summary of the report at State House yesterday.

According to official figures, total exports of mineral concentrate ores by Acacia Mining Plc – the country’s biggest gold miner – before an indefinite ban imposed by President Magufuli back in March was between 250 to 300 containers per month.

Another committee finding was that scanners at the port of Dar es Salaam did not have the capacity to properly scan the contents of concentrate ores for real minerals.

The team recommended that the ban on mineral sand exports should remain and the government should work on establishing its own smelting plant within the country.

It also proposed that serious disciplinary measures be taken against officials of the Ministry of Energy and Minerals and TMAA for failing to take action despite the presence of such tax evasion loopholes within their dockets.

President Magufuli personally ordered the impoundment of the 277 containers that provided the basis of the committee’s report when he made an impromptu visit to Dar es Salaam’s harbour area on March 23. The mineral sand loaded in the containers was said to come from Lake Zone-based gold mines owned by Acacia.

The probe team he appointed was given the mandate to also verify the contents of containers with gold/copper concentrate loads at various inland container depots (ICDs) countrywide.

Apart from Prof Mruma, other members of the committee comprising mainly chemists and geologists were Prof Justianian Ikingura, Prof Joseph Bushweshaiga, Dr Yusuf Ngenya, Dr Joseph Yoweza Philip, Dr Ambrose Itika, Mohamed Makongoro, and Henry Gombela.

http://www.azaniapost.com/economy/cover-up-uncovered-h3873.html

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