The Tanzanian government has issued formal instructions to halt mining operations at Tanzanite One Mining Limited (TML) following an official report that has held that the company is in breach of certain local rules and regulations, local media reports have stated. Government officials will take steps to ensure that activity recommences once compliance has been achieved.

According to the media, actual mining activity at the site had remained shut for a considerable period following various disputes with other mining companies, artisanal miners and others operating in the region, and that cessation of work has now been formalised. Workers have not been paid wages for nearly a year, the reports point out.

One dispute involved allegations of trespassing between TML and Gem and Rock Ventures Company Limited (GR), while other issues concerned various apparent irregularities in licensing, actual area of operations when compared to permits, outstanding dues, etc.

Government officials were reported to have said that among the plans being drawn up to address these issues was the construction of a wall around the Mirerani area to keep unauthorised miners out; plus establishment of mining centres, possible ending of the joint venture arrangement between TML and state-run mining company, STAMICO, among others.

TML, which was initially owned by African Gemstones (AFGEM) Limited of South Africa and later by Richland Resources of UK, is now under the Sky Associate Group Limited, a company headed by local businessmen including directors, Hussein Gonga and Faizal Shaibhal. They told the media that they are in talks with the government and a potential new stakeholder to revive mining activity of TML.