Dar es Salaam — TanzaniteOne Mining Company Limited has agreed to compensate the government with regard to some anomalies committed by the company in the past.
This revelation was made by the Minister for Constitution and Legal Affairs, Prof Palamagamba Kabudi, who led the government team in negotiations with TanzaniteOne.
The agreement was signed by Prof Kabudi and TanzaniteOne managing director Faisal Juma in Dar es Salaam yesterday, according to a statement released by the deputy director in the Directorate of Presidential Communications, Mr Jafari Haniu.
TanzaniteOne, according to Prof Kabudi, has agreed to pay compensation to the government as well as uncollected taxes. However, the minister did not disclose the amount that the company will pay.
Prof Kabudi further revealed that the compensation will be paid in instalments. According to Prof Kabudi, the first instalment will be paid to the government in two weeks from yesterday.
He also revealed that TanzaniteOne has agreed to adhere to the 2010 Mining Act and its regulations.
Among the conditions stipulated in the Act, which TanzaniteOne has agreed to adhere to is the one, which requires mining to be conducted by locals.
For his part, TanzaniteOne boss commended President John Magufuli for forming the negotiation team, which has managed to settle differences between the two parties.
He assured the government that his company will adhere to country's laws governing the mining sector.
"We will make sure that Tanzanians benefit from the resources," said Mr Juma.
The team formed by President Magufuli to probe the Tanzanite business started negotiations with TanzaniteOne earlier this year.
The negotiations intended to ensure that the mining of tanzanite in Tanzania is conducted in such a way that it benefits the country and its people.
The team was formed shortly after Parliamentary Committee handed its report to the President. The report faulted TanzaniteOne for several anomalies.