Tanzanite Miners Await Ruling Against AFGEM

By Hamza Kondo

Local Merelani miners confront an AFGEM worker during a protest of the company's mining operation. Photo by Hamza Kondo.

For the latest news on this story, see Tanzanian Judge Dismisses AFGEM Suit. UPDATED: 9/10/01

Other related stories: Tensions Boil Over at Tanzanite Mines; Merelani Mining Conflict Results in Death.

MERELANI, TANZANIA - Dealers report that tanzanite might soon be in even shorter supply due to the legal quarrel among miners in the village of Merelani. Tanzanite miners and the people of nearby Arusha eagerly wait to hear when the high court of Tanzania will rule on the case of the local miners and dealers versus African Gem Resources Ltd. (AFGEM), a large mining corporation currently occupying a major tanzanite mining plot in Merelani called Block C.

Ongoing feuds between AFGEM and local miners and dealers led the locals to sue AFGEM and several individuals involved with the company. The local miners and dealers are being represented by the Federation of Miners Association of Tanzania (FEMATA), the Arusha Regional Miners Association (AREMA), and the FEMATA Miners Corp. (FEMICO). They argue that AFGEM has mistreated the local miners, refused to employ local personnel, and is attempting to create a monopoly of the tanzanite market, among other allegations. Charges have also been filed against Abdalla Kigoda, the former Minister of Energy and Minerals, who granted AFGEM its mining license in 1998.

The plaintiffs in the case claim that Kigoda violated certain sections of the Mining Act of 1998, among them section 8.3. This section states that a gemstone mining license cannot be granted to a non-citizen (of Tanzania) unless it is held by a person or persons who are participating with a Tanzanian citizen or citizens that have undivided shares that equal 25 percent or more of the total plot.

Others parts of the Mining Act that are allegedly in violation are sections dealing with corruption of the environment and the employing and training of Tanzanian citizens as part of mining operations.

Tanzania's Minister for Energy and Minerals, Edgar Maokola Majogo, spoke to upset local miners when he visited Merelani in April. Photo by Hamza Kondo.

The plaintiffs in the case want the courts to stop AFGEM mining operations in Block C while arrangements are made to grant the area to the plaintiffs (local miners). They also seek compensation of 10 million Tanzanian shillings (US$12,500) per person for violation and jeopardization of the miners’ safety; 25 million Tanzanian shillings (US$31,250) per person for those who have been injured in the violent feuds between the two parties; and 120 million Tanzanian shillings (US$150,000) for the families of those who were buried alive at the mines. No total number of persons to be compensated were given.

The plaintiffs also seek recovery of the bodies buried in Block C and general damages awarded to the miners for defamation, the loss of business, disturbances, embarrassments, and inconveniences in the amount of 3 billion Tanzanian shillings (US$3.75 million).

AFGEM, which has allegedly counter-sued the local miners, has denied all of the charges. In response to statements made concerning its branding of tanzanite, the company has curtailed further expenditure on branding elements, which were allocated US$5 million in 2001. They firmly state that their branding campaign is not a “monopolization of the market.”

Although a government order was issued to stop mining on more than 70 of Merelani’s 285 plots, reports from Arusha indicate that many miners have violated the order and continue to prospect for tanzanite. The miners and present owners of the plots reportedly believe that they will be given priority in the reallocation of the plots.