The government last year collected Sh310.66 billion as royalty and taxes from large scale mines, according to the Tanzania Minerals Audit Agency (TMAA) annual audit Report.

TMAA Director for Financial Audit and Analysis Elikana Petro mentioned the mines as Bulyanhulu, Buzwagi, Geita, Golden Pride, New Luika, North Mara, Tulawaka, Tanzaniate One and Williamson Diamonds Limited (WDL).

In an interview with this paper in Dar es Salaam this week, Petro described large scale mines to be ones with investment of more than $100 million

He said a total of Sh2.7 billion royalty was also collected from some medium and small scale mining operations as a result of TMAA strategic audits.

The official said they would continue aggressively to monitor and audit large, medium and small scale mining operations this fiscal year to ensure the owners make the required payments to the government as well as conduct activities in sound environmental manner. 

The audit cites Geita Gold Mine (GGM) as leading gold producer in 2013 with 37% of total production. In 2013 gold output (from gold bars and copper concentrate products) by major gold mines was the same as the previous year at 1.25 million troy ounces.

Total mineral exports in 2013 from gold bars and copper concentrates produced by the seven major gold mines were 1.24 million troy ounces of gold worth $1.74 billion; 12.70 million pounds of copper worth $40.95 million and 0.38 million troy ounces of silver worth $8.93 million – making a total worth of $1.79 billion, down 17.7 per cent compared to $2.17 billion realized in 2012.

The mines are Bulyanhulu, Buzwagi, Geita,Golden Pride, New Luika, North Mara and Tulawaka,

According to the report, royalty to government by the seven major gold mines during the year under review was $ 70.76 million, representing a decrease of 4.47 per cent compared to $74.07 million realised in 2012.

He added that Tanzanite One Tanzanite Mine (TTM) produced 3.24 million grammes in 2013. It sold Tanzanite worth $10.97 million, with total royalty paid amounting to $229,545.

Diamonds output at Williamson Diamonds Limited (WDL) during the year was 158,562 carats, up 17.35per cent compared to 135,122 carats produced in 2012. 

The mine exported 144,354 carats of diamonds worth $39.56 million in 2013, compared to 116,658 carats worth $29.85 million the previous year. A total of $1.91 million was total royalty paid for the exported diamonds. 

Capital investment and operating expenditure was conducted on seven major mining companies, 15 medium scale mining companies and seven mineral dealers.

The audits revealed a number of significant queries which could lead to recovery of lost revenue by government once acted upon by the relevant authorities,

The auditing of minerals produced and exported by major gold mines conducted by TMAA in the year undwer review aimed at ascertaining the quality and quantity of gold, silver and copper production and exports by each mine.

The report says TMAA auditors inspected every smelting session performed in the respective gold rooms including the pouring, marking, weighing and sampling of ingots. 

The total value of mineral exports by the seven major gold mines decreased by 17.7 per cent from $2.16 billion in 2012 to $1.79 billion in 2013, largely due to lower gold prices in the world market during the year.

The TMAA said monitoring and auditing coal production and sales activities continued at Ngaka Coal Mine (NCM). During the year, the mine produced 128,920 metric tonnes and sold 134,063 metric tonnes of coal worth $7.45 million. 

Resolute Tanzania Limited (RTL) paid a total of Sh15.53 billion in 2013 as corporate tax. Cumulatively, the company has paid corporate tax amounting to Sh100.39 billion.

Geita Gold Mine Limited (GGML) paid a total of Sh8.97 billion as corporate tax. Cumulatively, the company has paid corporate tax amounting to Sh308.34 billion.

WDL paid alternative minimum tax amounting to Sh178.9 million, withholding tax amounting to Sh2.77 billion which was not paid from payments made to mineral rights holders and mining technical services.

Click here to view the Tanzania Minerals Audit Agency (TMAA) Annual Report 2013.