Before Richland Resources exited Tanzania to focus on tsavorite mining in Australia, it constantly bemoaned the unabated illegal tanzanite mining that seriously disrupted operations on its Block C at Merelani.
It alleged that neighbouring miners were tunneling into its operations and this had resulted in loss of a significant amount of high grade tanzanite.
Although a joint venture agreement with the state-owned company, Stamico raised Richland’s hopes that the Tanzanian army would help eject the illegal miners from the block, this wasn’t the case as profits also plummeted.
Some of these illegal mining activities were blamed on artisanal miners.
However, the Federation of Miners Associations of Tanzania’s gemstone committee chairperson, Gregory Kibusi told Rough & Polished’s Mathew Nyaungwa that the small-scale miners were not to blame.
He instead blamed the gemstone brokers and dealers for being involved in illegal mining in the country.
Kibusi also indicated that they had asked government to shelve the ban of rough tanzanite weighing 1 gram or 5 carats to promote beneficiation.
He said there was need to strike a balance between local beneficiation and allowing miners to export big stones, which in turn would attract better prices on international markets.
Below are the excerpts.
What the current production level by small-scale gemstone miners in Tanzania?
Currently as small-scale miners in Tanzania, we are doing well in terms of production, for example in gold mining, though we are facing some challenges, our production is between 20 and 25 tonnes of gold per year. Of course this does not fully reflect the total output as you know in Africa most people are not that open with their operations. They don’t bring their quarterly and annual reports to the mineral offices. At least we have rough estimations of production.
What is the situation like in terms of diamond production?
In terms of diamond mines, we have a decline in production and this is due to the availability of the potential areas of mining and of course the machinery and technology of washing the stones. Miners are still using old methods of sieving and they mine using spades and shovels. So the production is really going down because of this.
As representatives for artisanal miners, what are you doing to nip illegal mining in the bud, given that this led to Richland Resources exiting its tanzanite operations in the country?
As artisanal miners we are not engaging in illegal mining and exporting of minerals, the dealers and the brokers are the ones who are fully engaged in this kind of illegal actions. We just mine and sell to brokers and the dealers. As artisanal miners we need to help the government to make sure that no one is smuggling the gemstones outside the country. Of course they are some few challenges: the dealers and the brokers facing some bureaucracy in terms of exporting. Of course there was a ban of exporting rough tanzanite above 1 gram and we proposed to the government to remove this ban so that the big rough tanzanite stones should be also exported. However, we also want value addition to grow by making available stones to be cut here in as much as we should be allowed to export bigger rough tanzanite.
What has been the government’s response as far as smuggling of gemstones is concerned?
The immigration and Tanzania mineral audit agency are all over the airports and all points of entry where they do thorough check-ups to foil any smuggling of gemstones. So you can see the response of the government. Many smugglers have been caught as a result. Of course I am not part of the government, but one can see that the government’s willingness to get rid of smuggling is there.
Some artisanal miners in the country have been struggling to market their gemstones. Are there any changes in this regard?
Of course, the industry has been rejuvenated due to the availability of trading platforms such as the Arusha Gem Fair. So you see that some mines that were dormant are now coming back on stream. As artisanal miners we are now in a position to access international markets such as India, Thailand, Sri Lanka. We are benefiting from that and we also understand which kind of stones are trending on the international markets.
Which stones are on high demand?
Tanzanites are doing well. We gave green garnets, tsavorite, tourmaline, and of course emeralds and sapphire. These stones are trending well because each and every buyer who came during the Arusha Gem Fair in April also asked for these stones.
What has been the level support from the Tanzanian government for artisanal miners?
The government is trying its best to ensure the growth of the industry, for example the government in 2012 through the minerals ministry, formalised the artisanal miners by forming regional associations and eventually the federation of which I am the chairman of the gemstone miners. So the first step was to formalise the artisanal miners and now we are expecting some grants to buy some equipment and of course in marketing of goods. It’s not that huge, yes, but the government is trying its best. The World Bank is supporting the artisanal miners by giving grants as well.
Mathew Nyaungwa, Editor in Chief of the African Bureau, Rough&Polished
