Tanzania may have lost $30b in mining revenue, probe team says

Tanzania may have lost more than Tsh68.6 trillion ($30 billion) in revenue through creative accounting by mining companies.

While presenting its report to President John Magufuli, a second committee set up to probe earnings in the sector said mining companies, colluding with government officials underreported the export of mineral concentrates in order to dodge taxes.

The committee was tasked to look into the economic and legal aspects involved in the export of mineral concentrates from 1998 to 2017.

Acacia Mining

The committee also cast doubt on the continued operation of Acacia Mining in Tanzania based on findings that the company was not registered in the country.

“The Committee couldn’t find any recognised legal documents to prove its operations in Tanzania or holding shares on the three mines operating in the country. Legally speaking it is clear that the mentioned mining company is a non-existing firm in Tanzania,” said committee chairman Nehemiah Nehemiah Osolo.

Acacia Mining plc is Tanzania’s largest gold miner and one of the largest producers of gold in Africa. It operates three mines namely Bulyanhulu, Buzwagi and North Mara.

Registration

Under the law, companies doing business in the country are required to register with Tanzania’s Business Registration and Licencing Authority.

The committee accused Acacia Mining of under-representing the amount of concentrates exported during the period in order to evade taxes.

Another committee which submitted its report to President Magufuli last month had focused on the geological aspects of the concentrates to determine the exact nature of minerals in the containers held at the Dar es Salaam port.