Singida East MP Tundu Lissu has criticised President John Magufuli’s ban on exportation of gold sand abroad for smelting.
The
opposition politician said on social media yesterday that by banning
the exportation, President Magufuli had gone contrary to contracts with
investors and laws governing mineral activities in the country.
Referring
to Bulyanhulu gold mine, Mr Lissu said contracts signed by President
Magufuli’s predecessors, Mr Benjamin Mkapa and Mr Jakaya Kikwete, stated
that investors owned both the gold and gold sand found in the area.
He said since 2001 investors at Bulyanhulu had been exporting 30 per cent of sand to Japan for smelting.
“In
Bulyanhulu they don’t mine only gold, but also other minerals which
include silver, cobalt, copper and cadmium. The mine has the capacity of
smelting 70 per cent of gold, while the remaining 30 per cent is
exported to Japan for smelting,” said Mr Lissu.
Before
issuing such an order, the President was supposed to engage investors
with a view to constructing a smelting plant in the country, he added.
He
also said it would have been better if the country would have reviewed
laws and regulations governing the minerals sector in order to avoid
legal wrangles with investors.
He
gave an example of Bolivia President Evo Morales, who withdrew his
country from the Multilateral Investment Guarantee Agency (MIGA) and
bilateral investment treaties (BITs) before revoking some contracts with
investors in order to avoid legal consequences. Mr Lissu said the
President’s decision would not benefit Tanzania because the country had
no smelting capacity.
Speaking
during a public rally in Kahama on Sunday, President Magufuli said gold
miners should invest in smelters in Tanzania instead of “exporting”
sands to recover minerals in them.
The
President, who was on a tour of the Lake Zone, said among all the
countries blessed with minerals, it was only Tanzania that airlifted its
valuable sands abroad, adding that his government would not allow that
to continue.
“It
is very surprising that these investors have been air-lifting mineral
sands to other countries. They must now build processing plants right
here in Tanzania to purify the mineral sands,” he said.
Source: The Citizen
