The activities of the nation’s large and medium-scale miners have been impeded by a lack of sodium cyanide, which is necessary to extract gold from ore.
Gold production has decreased as a result of the shortfall that was observed in the final three months of 2022 and that is related to the ongoing conflict between Russia and Ukraine.
According to reports from government cycles, the government was assessing the situation in order to make the best possible interventions.
Speaking to cyanide businesspeople in Mwanza on Saturday, Minerals Minister Dr. Dotto Biteko expressed his suspicion of unethical behavior in the industry.
“I’m not sure if the Chief Government Chemist has been given accurate information or not. Because, if you follow up on the data of the amount imported and sold, you will notice that there is a huge difference,” he said.
“The quantity sold is small compared to imports. Where is the other amount? Probably, it is sold in the black market,” he added, commending traders who abide by government instructions.
He claimed that some dishonest businesspeople would charge Sh800,000 for a barrel of the chemical but then issue receipts stating that they had only charged Sh600,000.
He claims that a merchant at Nyakafuru Mines sold five cyanide drums to a miner for Sh4 million, or Sh800,000 each, but that he was given a receipt showing that the chemical was sold for Sh3 million, or Sh600,000 each.
“Why do this to poor small-scale miners? Why don’t you do so to large and medium-scale miners like GGM and others,” he questioned.
“I would like to see measures taken against the trader. If it is the license, it should be withdrawn from him/her and be given to someone serious…,” he added.
Additionally, he stated that he lacked the authority to take action against the person and that they would be given to the appropriate authorities for legal action.
Indicating that the CCM government led by President Samia Suluhu Hassan would not remain mute when small-scale miners expressed their outrage, he claimed to have three incidents that were comparable.
John Bina, president of the Federation of Small Scale Miners Association of Tanzania (Femata), demanded that the government remove cyanide, mining, and refinery equipment from a list of companies in order to stop the collapse of the sector.
Leonard Mwita, the chairman of the Tanga Mineral Miners Association, claimed that traders profited from the Covid-19 and the Russia-Ukraine war.
The declarations follow concerns that the country’s gold production has been negatively impacted by the impending scarcity.
According to reports, the Russia-Ukraine war and the effects of Covid 19 were both to blame for the shortage and price increase.
According to the Government Chemist Laboratory Authority (GCLA), each month, 500 to 700 tonnes of cyanide were needed to replace mercury in mining operations.
The sector has suffered because of the shortfall, particularly between September and November of last year.
Daniel Ndiyo, head of regulatory services for GCLA, however, said that the cost of a 50 kilogramme barrel of cyanide has climbed from Sh500, 000 to Sh1.2 million.
“But, a stakeholder’s meeting held in December last year resolved that the price should be reduced to Sh600,000,” he said.
He did, however, make a suggestion that another stakeholder conference was planned for Dodoma this month to examine the situation and decide the best course of action.
Simon Shayo, vice president of Geita Gold Mining (GGM), stated that the business anticipates evaluating the adverse effects of the shortfall next week.
A participant named Mr. Jeremia Kituyo claimed that the lack of chemicals has had a negative impact on the production of gold and urged the government to continue addressing the issue.
Dr. Biteko is anticipated to preside over the stakeholder conference in Dodoma later this month, according to Ministry of Minerals Permanent Secretary Adolf Nduguru.
According to data from the ministry of minerals, large- and medium-scale miners produced 53,795.86 tonnes of gold in 2019–2020, or 71% of the total.
As of March 2021, minerals brought in $3.103 billion, or 45.9 percent of all exports, with gold accounting for 90 percent of all exports.
Large- and medium-scale miners typically use chemicals imported from foreign nations such as South Korea, India, Georgia, and China during extraction activities as a replacement for mercury, which has been proclaimed to be toxic.
