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- Feb 11, 2006
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Tanzania has banned the export of raw tanzanite gemstone.
Minister of Energy and Minerals William Ngeleja announced the embargo last week saying the action was taken to spur development of the local processing industry, thereby boosting the economy and recouping profits.
"As from April 2, the export of raw tanzanite is banned," Mr Ngeleja said, adding: "Dealers found violating the sanction will have their consignment confiscated and licences nullified."
This is a blow to India's second largest city of Jaipur, the main importer of the mineral. Tanzanite accounts for one-third of the annual gem imports of Jaipur and employs nearly 250,000 people in cutting and polishing the raw gem for re-export.
Industry players in India fear Tanzania may extend the ban to the export of all raw gem material including diamonds, emeralds, rubies, sapphires, turquoise and topaz.
"If the Tanzania policy is applied, it will negatively affect the Jaipur gemstone sector," said Jaipur-based United Jewellers' Sanjay Phophalia.
Gem and Jewellery Export Promotion Council of India vice chairman Rajiv Jain was more optimistic saying talks had already been initited with Tanzania, "to find the best possible solution to rescue the trade of Jaipur."
According to Jagdish Tambi of KL Tambi of Jaipur, Tanzania's move is ill-advised as the country does not have the capacity to cut and polish the gemstone.
However, Tanzania Mineral Dealers Association (Tamida) chairman Sammy Mollel disputes this, saying the country has over 400 qualified experts in cutting and polishing tanzanite gemstone.
"So far over 120 tanzanite cutting and polishing have been deployed in Arusha with a capacity to cut and polish all tanzanite production," Mr Mollel said.
According to Mr Mollel, cutting tanzanite locally will minimise smuggling, create employment for the local people and help the industry contribute more to the government in terms of revenue.
He said that Tamida would work with the government to revive gemstone exhibitions, which were held annually in the 1990s in Arusha to showcase the country's mineral potential.
"Our intention is to bring buyers of all sorts of gemstone from around the world to Tanzania," he added.
It is estimated the tanzanite nets about $100 million annually while the finished gems are sold for over $500 million annually.
Under the revised legislation, the mining of gemstones will be reserved for locals but foreigners can enter into joint ventures with Tanzanian nationals.
Further, mining contracts will be reviewed every five years, with specific areas set aside by the government to avert recurring conflicts with big miners.
Also, Tanzania will not issue new gemstone mining licences to foreign companies.
Current agreements with foreign mining companies remain unchanged.
Source: The East African: *- Business*|Dar bans export of raw tanzanite
Minister of Energy and Minerals William Ngeleja announced the embargo last week saying the action was taken to spur development of the local processing industry, thereby boosting the economy and recouping profits.
"As from April 2, the export of raw tanzanite is banned," Mr Ngeleja said, adding: "Dealers found violating the sanction will have their consignment confiscated and licences nullified."
This is a blow to India's second largest city of Jaipur, the main importer of the mineral. Tanzanite accounts for one-third of the annual gem imports of Jaipur and employs nearly 250,000 people in cutting and polishing the raw gem for re-export.
Industry players in India fear Tanzania may extend the ban to the export of all raw gem material including diamonds, emeralds, rubies, sapphires, turquoise and topaz.
"If the Tanzania policy is applied, it will negatively affect the Jaipur gemstone sector," said Jaipur-based United Jewellers' Sanjay Phophalia.
Gem and Jewellery Export Promotion Council of India vice chairman Rajiv Jain was more optimistic saying talks had already been initited with Tanzania, "to find the best possible solution to rescue the trade of Jaipur."
According to Jagdish Tambi of KL Tambi of Jaipur, Tanzania's move is ill-advised as the country does not have the capacity to cut and polish the gemstone.
However, Tanzania Mineral Dealers Association (Tamida) chairman Sammy Mollel disputes this, saying the country has over 400 qualified experts in cutting and polishing tanzanite gemstone.
"So far over 120 tanzanite cutting and polishing have been deployed in Arusha with a capacity to cut and polish all tanzanite production," Mr Mollel said.
According to Mr Mollel, cutting tanzanite locally will minimise smuggling, create employment for the local people and help the industry contribute more to the government in terms of revenue.
He said that Tamida would work with the government to revive gemstone exhibitions, which were held annually in the 1990s in Arusha to showcase the country's mineral potential.
"Our intention is to bring buyers of all sorts of gemstone from around the world to Tanzania," he added.
It is estimated the tanzanite nets about $100 million annually while the finished gems are sold for over $500 million annually.
Under the revised legislation, the mining of gemstones will be reserved for locals but foreigners can enter into joint ventures with Tanzanian nationals.
Further, mining contracts will be reviewed every five years, with specific areas set aside by the government to avert recurring conflicts with big miners.
Also, Tanzania will not issue new gemstone mining licences to foreign companies.
Current agreements with foreign mining companies remain unchanged.
Source: The East African: *- Business*|Dar bans export of raw tanzanite