Tuesday, July 28, 2020

Tanzanite Gemstone: Changing the future of Tanzania’s small miners

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Nikhita Gautam

Article Title

Tanzanite Gemstone: Changing the future of Tanzania’s small miners

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Global Views 360

Publication Date

July 28, 2020

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Miner Saniniu Laizer with the tanzanite gemstones

Miner Saniniu Laizer with the tanzanite gemstones | Source: Tanzanian government

A beautiful gemstone with a wide range of colours, from light to dark hues of blue and violet, found only in a patch 4 kilometres long and two kilometres wide at the foot of mount Kilimanjaro in Tanzania. Existing supply of these gems would run out in about 20 years and finding it in any other region has the probability of just one in a million. Tiffany & Co, the American jewelry manufacturer, described it as “the most important gemstone discovery in over 2000 years”. Yes, we are talking about Tanzanite, the pride of Tanzania.

This rare gemstone was in news recently when a small time miner, Saniniu Laizer found two large weighing 9.27 and 5.103 kgs which are the two largest tanzanite gemstones ever found. This discovery turned the miner millionaire overnight as those pieces were sold at about 3.35 USD. He was congratulated on live television by President John Magufuli, who himself was elected in 2015 with the promise of preservation of the nation’s interest in the mining industry. Mr Laizer’s mining operation includes more than 200 miners and he intends to use the money for the development of a school and a shopping mall near his home.

In order to promote the industry, many reforms were undertaken by the  government of Tanzania. It started taking a 50% equity in all mining projects after 2010 and banned the export of large sized raw gemstones. A fence was also built  in 2018 around the whole area where Tanzanite is mined but about 40% are siphoned without paying any royalty to the government.

However the discovery of such gemstones by a small miner was made possible due to the government policy of promoting local artisanal miners. In order to foster local ownership, the government gave the land and exclusive mining rights to the artisanal miners who mostly owned small and medium establishments. Many trading centres were established by the government in 2019  to facilitate these miners sell gems and gold directly to the government and earn better revenue.

Such discoveries sound promising for the industry in the light of how extensively they are promoted, and how many effective actions the government has taken to protect the industry. This also acts as a big morale booster for the small miners to redouble their efforts and search for the gemstones more vigorously.

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February 4, 2021 4:52 PM

Late Sultan Qaboos’s Legacy And What’s Next For Oman

On the morning of January 11, 2020, the citizens of Oman awoke to the news that Sultan Qaboos Bin Said, the monarch of the small Gulf nation, had passed away the previous day after a 49-year rule.

The late Sultan Qaboos came to power in 1970, after he overthrew his conservative father in a palace coup with the help of the British. He then set about modernising his impoverished country, using Oman’s newfound oil wealth to fund its infrastructure. When he took over the throne, Oman had only three schools and harsh laws banning electricity, radios, eyeglasses and even umbrellas. By the time he left, Oman developed a good education system, a robust economy, and has become a tourist destination.

Apart from bringing about this ‘renaissance,’ Qaboos also gained worldwide fame for championing neutrality and constructive diplomacy. Despite being located in the Strait of Hormuz in the turbulent Middle East, he maintained relations with countries ranging from Saudi Arabia, Qatar, Iran, Israel, and Palestine, and also with the Houthi rebels in Yemen. Perhaps the greatest result of this long-standing policy was enabling backchannel talks between the US and Iran which led to an international nuclear deal.

Sultan Qaboos also introduced democratic institutions in Oman, issuing the country’s first constitution, granting universal suffrage to all citizens above 21, and allowing the country’s first municipal elections in December 2012. However, he also suppressed dissent to the extent of shutting down news outlets and arresting protestors, journalists and activists, sometimes for opinions expressed on social media.

Oman experienced ripple effects of the Arab Spring in the form of months of protests against corruption and unemployment; and eventually Sultan Qaboos relented by giving more legislative powers to the Council of Oman and promising to increase wages and create jobs. While this satisfied the protestors, it did not mean life under ‘Baba Qaboos’ was all roses and no thorns for everyone. As detailed in this 2020 Periodic Review by Human Rights Watch, Sultan Qaboos revised Oman’s penal code in January 2018, which included “increasing punishments for offenses that relate to the peaceful exercise of freedom of expression.

The last few years of Qaboos’ rule saw economic stagnation and a crash in global oil prices which resulted in high youth unemployment rates  in a country where a significant portion of the population is under the age of 25. The large budget deficits and high debt have prompted the rating agencies such as Moody’s to downgrade Oman’s credit rating to ‘junk’ status. In an attempt to reduce the dependence on oil, Sultan Qaboos launched ‘Vision 2020’ to encourage innovation in other areas. This initiative failed to meet the objective and got renamed as ‘Vision 2040.’

This was the scene laid out for the new Sultan Haitham Bin Tarik, who was designated the new ruler of Oman as per a secret envelope containing late Sultan Qaboos’ choices for his successor.

Haitham bin Tarik was the Minister of Heritage and Culture before his accession to the throne, and also happens to have been the Chairman of the ‘Vision 2040’ committee, among other posts. In his first royal speech, he vowed to continue in the footsteps of his predecessor, especially in regards to the state’s foreign policy. In another royal speech in February, he charted a ‘future roadmap’ for Oman and claimed that he will prioritize education and youth employment. He has been active in these past six months, having issued 70 Royal Decrees concerning appointments, amendments, and new laws, among others.

Sultan Haitham is already being put to the test as Oman battles the COVID-19 along with the rest of the world. Omanis are looking at a new vision with renewed hope, one of the new sultan who brings with him great promises and perhaps a renaissance of its own kind. Will Oman be able to maintain its tradition of neutrality? Will the fight for a progressive and inclusive Oman find its voice? Will Oman be able to save itself from the consequences of a glut in crude oil economy? The citizens of Oman hope and wish that their new sultan will get the right answer and steer the country towards a more secure and prosperous future.

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