The government of Tanzania will now own 50 per cent of tanzanite following the signing of an unincorporated joint venture between the State Mining Corporation (STAMICO) and Tanzanite One Mining Limited.
The 50/50 joint tanzanite mining activities will be carried out at Block C, Mirerani.
The agreement is a direct result of the 2009 minerals policy and 2010 mineral acts, which collectively require foreign companies to own not more than 50 per cent shares in the mining sector.
The deal, signed by STAMICO Director General Gray Mwakalukwa and TanzaniteOne Chairman Ambassador Ami Mpungwe, also outlined that both parties would have 2.5 per cent of the gross sales revenues to cover for administrative charges.
Mwakalukwa said that STAMICO would pay TanzaniteOne four million US dollars as compensation for mines infrastructure.
He said that the payment would be made through gross sales revenues.
Mwakalukwa also noted that there would be a monitoring and evaluation unit formed from both sides to closely monitor all operations of the mine and added the partnership will be overseen by joint operating committee as well.
“The committee will have the final say over exploration, distributions of profit and all other activities related to joint venture," he said, adding the committee would consist of three members from each side.
"This joint venture, the first phase of which is set for ten years, will help improve the mining industry and ensure that a more significant income is generated from the sector," said Mwakalukwa.
