Geological survey show that Tanzania is endowed with many kinds of extractive resources and mining accounts for about 3.2% of Tanzania’s GDP and 3.6% of its total tax revenues. Gold represents about 90% of these mineral exports and the petroleum sector is dominated by natural gas. Uranium is being explored in different parts of the country and it is estimated that Tanzania possesses 53.9 million pounds of uranium oxide (U3O8) deposits, valued at $2.2 billion.
This was said at the Policy Forum breakfast talk which took place on the 28th September 2012.
Dr. Lugemeleza Nshalla, the Director of KITUO CHA MAZINGIRA, said that due to the drop of uranium prices in the world market, the government decided to stop those explorations in 1980 before starting again two decades later in different parts of the country.
He highlighted, however, some weaknesses in policy and pointed out a disconnection between the exploitation currently happening and the ability to develop uranium deposits, a venture that the government wants engage in. He also said that the government could lose about 320 billionTshs in mining taxes because of ineffective legal framework
He also revealed that the Tanzania Revenue Authority (TRA) sent a number of notices to ARMZ seeking $200 million in capital gains tax and stamp duty but ARMZ disputed the tax demand and currently there is a pending case at the Tax Revenue Appeal Board (TRAB).
He concluded that after the complete sale of the mantra resources uranium to affiliated companies ARMZ and uranium one, the compnay will earn about $ 250 million annually but will pay just $ 5 million in taxes, royalties, fees and workers’ Pay-as-you-earn (PAYE).