Tanzanite ban: Smuggling in full swing
By ADAM IHUCHA and FLORIAN KAIJAGE
Posted Monday, April 4 2011 at 00:00
THE EAST AFRICAN
Tanzanite crystal smuggling is back in full swing, a year after Tanzania had banned export of rough gemstone.
The country had set December 31, 2010 as the deadline for any official trade of unprocessed Tanzanite, the precious gemstone found only at Mererani, near Arusha.
Tanzania's Northern Zone Mineral officer, Benjamin Muchwampaka told The EastAfrican in Arusha last week that the government collected barely $594,255 in July 2010, down from nearly $858,380 before the ban.
Mr Muchwampaka said the state is currently working out a strategy that will see the introduction of "certificates of origin" in a bid to curb smuggling of tanzanite and boost revenue from the rare gemstone.
Currently, dealers need a mere permit to export tanzanite, a situation that abets smuggling.
Once the new system comes into force, exporters would require the certificate of origin to be signed by three designated officials before they export tanzanite consignments.
This is in line with the government decision last year through Notice number 146 on export of tanzanite.
The notice that bans export of raw tanzanite was received negatively by dealers who claimed to have no equipment for cutting and polishing of the stones.
Tanzanite One, the Southern African mining company claims the company was yet to implement the directive due to technical hindrances as they lack enough expertise to cut and polish gemstones.
William Ngeleja, Minister for Energy and Minerals told The EastAfrican in Dar es Salaam last week that the government wanted the stones sold in the foreign market after processing.
Mr. Ngeleja said the ban on export of unprocessed tanzanite was done to spur development of local processing facilities, thereby boosting the economy and recouping profits.
The government reiterated that the set timeline barring the trade of raw tanzanite could neither be reviewed nor extended.
Traders say rough tanzanite is not as fast moving in the market as it was prior to the government comprehensive ban on export of raw Tanzanite.
Adam Malima, Deputy Minister of Energy and Minerals maintains that the export of raw tanzanite is illegal and that dealers found infringing the ban will have their consignment confiscated and license nullified.
Sammy Mollel, Chairman of the Tanzania Mineral Dealers Association (Tamida) has repeatedly said that cutting tanzanite locally would minimise smuggling, create employment for local people and contribute to revenue.
Tamida in conjunction with the government is working to revive gemstone exhibitions, which were held annually in the 1990s in Arusha to showcase the country's mineral potentials.
Tanzanite mining nets the government approximately $20million annually (Mhhhh!). The finished gems are usually sold on the US market for about $500 million annually.