ARUSHA, Tanzania, Aug. 16 (Xinhua) -- Tanzanian authorities on Tuesday described tanzanite auctioning as one of the important ways of controlling smuggling of the blue gemstones, which are only found in the east African nation.
Joel Bendera, Regional commissioner for Manyara said: "We came to learn that tanzanite auctions help a lot in controlling smuggling... this needs to continue for the gemstone to remain an important contributor to the country's economy."
He was speaking at the four-day gemstone auction held in the Tanzania's northern capital of Arusha.
"This has proved to be an effective tool towards reducing smuggling of the gemstones as miners and dealers can get better price within this area," the official said, assuring tanzanite miners that the Tanzanian government would continue to guarantee safety and security of the gemstones against smugglers.
Bendera said that peace and stability in the mines were aspects that amplified the productivity, saying the government would make sure that mining activities were carried out peacefully.
During the event, tanzanite stones worth 4.3 million dollars were sold in four days, earning the government 173,203 dollars in royalties.
James Mdoe, Deputy Permanent Secretary in the Ministry of Energy and Minerals, said through the auction, revenue would be collected more easily since the auction takes place in one area.
He said through auctioning, the problem of trafficking tanzanite to neighbouring countries would be contained because buyers would have the opportunity to come and purchase them personally.
Prof. Mdoe said the Tanzanian government would continue to improve the next auctions to ensure the country benefits from the minerals.
Reports say that Tanzania lose millions of U.S. dollars in tax revenue due to smuggling and illegal mining of tanzanite.
