The Minister for Constitution and Legal Affairs, Professor Palamagamba Kabudi, who led the government team in negotiations with the mining company revealed this on Wednesday.
The agreement was reached by Minister Kabudi and the mining company’s Managing Director, Faisal Juma in Dar es Salaam yesterday, according to a statement that was released by Deputy Director of Presidential Communications, Jafari Haniu.
Kabudi said Tanzanite One would agree to pay compensation to the government as well as uncollected taxes. The minister did not disclose the amount to be paid.
Kabudi said the company will pay the compensation to government in installments, starting on the 1 June 2018.
He also revealed that the mining company had agreed to adhere to the 2010 Mining Act and its regulations. Among the conditions stipulated in the Act, is a clause that would require mining activities on the mining site, be conducted by locals.
On his part, Juma commended the President for forming the team, which has managed to settle differences between the two parties.
He assured the government that his company would adhere to country laws, which govern the mining sector.
“As a mining company, we will make sure that we adhere to the country laws so that Tanzanians benefit from the resources,” said Juma.