The Citizen (Dar es Salaam)
Daniel Msangya
12 April 2011
The government has set aside special funds to support small-scale miners with soft loans, it was revealed in parliament yesterday.The funds would meet their demands to face various challenges, including lack of mining equipment, capital and technical knowhow.
This was said by the deputy minister for Energy and Minerals, Mr Adam Malima, when answering Ms Catherine Magige (CCM Special Seats).He said currently five firms under the State Mining Corporation (Stamico), Tan Discovery Mineral Consultancy, Kilimo G and General Supplies, C.E. Holdings and Gemstyles, have been given soft loans from the special funds.
The loans were for hiring and procuring modern mining equipment through a hire-purchase scheme. The aim is to evaluate and improve the quality of production of minerals under low costs.
Mr Malima said so far the companies have received a total of Sh345 million under the hire-purchase scheme for small-scale miners.He said the government had formed special centres at Rwamugasa in Geita District, Londoni in Singida and Pongwa Msungora in Bagamoyo District for hiring and purchasing mining equipment.
Centres for adding value to minerals have been set up at Mikocheni and Kijitonyama in Dar es Salaam, he said.The deputy minister further told the House that the government had set a budget of Sh5 billion for improving standards of both small and large scale miners. It has so far released Sh430 million to fulfill the desire of developing the country’s mining industry, he said.
He told the MPs that the government has also exempted from tax equipment used for mining and surveying.The exemption concerns both small and large scale miners who have legal surveying and mining licenses, he explained.
He was responding to a question asked by Ms Magige who wanted the government to explain about plans to support small scale miners so that they benefit from tax exemption and other resources like large scale miners.
AllAfrica – All the Time
Originally posted here:
Small Scale Miners to Benefit From Special Funds of Govt