Dar es Salaam — Tanzanite One Mining Company Limited has agreed to compensate the government with regard to some anomalies committed by the company in the past.
The minister for constitution and legal affairs Professor Palamagamba Kabudi, who led the government team in negotiation with Tanzanite One, revealed this on Wednesday.
The agreement was reached by Prof Kabudi and Tanzanite One Managing Director Mr Faisal Juma in Dar es Salaam yesterday, according to a statement released by deputy Director of Presidential Communications Mr Jafari Haniu.
Tanzanite One, according to Prof Kabudi has agreed to pay compensation to the government as well as uncollected taxes. However the minister didn't disclose the amount that the company will pay the government.
Prof Kabudi said that the company will pay the compensation in installments. According to Prof Kabudi the first instalment will be paid to the government in two weeks from yesterday.
He also revealed that Tanzanite One has agreed to adhere to the 2010 Mining Act and its regulations. Among the condition stipulated in the Act, which Tanzanite One has agreed to adhere to is the one which requires that mining activities at the mining site, should be conducted by locals.
On his part Tanzanite One managing Director Mr Juma commended the President for forming the team, which has managed to settle differences between the two parties.
He assured the government that his company will adhere to country laws, which govern the mining sector.
"As a mining company, we will make sure that we adhere to the country laws so that Tanzanians benefit from the resources," said Mr Juma.