THE PREMIER MARKETPLACE FOR REAL GEMS
Paul Sedawie
Paul Sedawie

Published at 15th Nov 2018

Modified at 2nd Aug 2023

Why Now Is A Good Time To Buy Tanzanite

Why Now Is A Good Time To Buy TanzaniteWritten by Paul Sedawie, Seda Quality Rough.

On a trip to Tanzania in 2012, I visited the largest Tanzanite mine called “Tanzanite One” to which I was fortunate to share a BBQ lunch with the mine manager. We spoke over a few beers and he mentioned that he was worried about the high production costs. If the prices remained the same he was concerned at how it would effect the future of the mine. He also mentioned about some political interference but I didn’t think too much of it at the time as all miners complain about the costs. He also mentioned that the company was looking at mining Sapphires in Australia and we talked about our stable government and the good business climate here. To read more about my 2012 Tanzania trip, click here.

CURRENT STATE IN TANZANIA

If we fast forward a few years, it appears that his worse fears and predictions have actually come true. The company has left Tanzania and is now mining Sapphires in Australia. I did hear reports that the engineers and geologists working on the mine had trouble getting visas to re-enter Tanzania. If this is true it means the company was forced to sell out, as it would have been too hard to continue mining. The mine has since been taken over by the locals that have strong connections to the government. Unfortunately it appears the locals weren’t experienced in miming operations and the production declined which resulted to a recent dismissal of 600 mine workers.

Why Now Is A Good Time To Buy Tanzanite

THE FUTURE OF TANZANITE PRODUCTION

The new president of Tanzania, John Magufuli is against corruption and it appears that the smuggling of Tanzanite has reach endemic proportions with the government revenue falling to only 10% of recent times. Some reports say over 40% of Tanzanite production is smuggled out and stock declared at low values to save on custom taxes. The government announced in September 2018 that is was building a 24-kilometre wall at a cost of $ 2.2 million around the Merelani mining area to police workers entering and leaving the site. When I last visited there was a wire fence around the mining area with guards located everywhere. The new fence is a solid brick wall and the army may even police it.

Now many overseas buyers won’t buy in Tanzania but request that the stock to be brought to Nairobi, Kenya for payment, as they are concerned about government policies and bribes are not uncommon there. Many local dealers in Arusha both large and small have been hit with massive tax bills running into hundreds of thousands of USD each.

Why Now Is A Good Time To Buy Tanzanite

A small one-man operation was hit with a $250,000 bill and sadly he is considering closing. All this has resulted in a massive decline in production from large miners to small artisan miners. Tanzanite auctions are still expected to be run by the government, but the prices will be high.

It appears that greed, corruption and smuggling has had an impact on this beautiful stone which should be considered as a great asset to the country.

Buy Tanzanite


3 people found this article helpful

Was this article helpful?

Share this article:

Search the Gemstone Encyclopedia

Related Articles

Star Stones - Your Star Sign Stones

Everyone has a gemstone that corresponds with their star sign. These are also known as your Star Stone. Learn more about these stones and find out what your Star Stone is.

10th May 2018

Zodiac Birthstones: Astrology & Birthday Gemstones

Originally the Birthstones or gemstones were associated with a zodiac sign or the month of a individuals birth. Find out what your stone is and view the stones we have for sale

8th Feb 2021

Four Tools For Gemstone Testing

There are so many tools on the market for testing a gemstone, but what are the main tools required for simple analysis. Lets look at four tools for gemstone testing.

4th Mar 2020

Latest Articles

Hodgkinsonite Gemstone: Properties, Meanings, Value & More

Hodgkinsonite is a very rare collector’s gemstone known for its vibrant pink or purple hues, only found in New Jersey, USA. Learn hodgkinsonite’s prices, history, properties, and traits in this guide!

9th Jun 2024

Canasite Gemstone: Properties, Meanings, Value & More

Canasite is a rare mineral usually found as greenish-yellow inclusions in charoite but also known as a purple gemstone. Learn canasite’s history, varieties, properties, and prices in this guide.

27th May 2024

Hubnerite Gemstone: Properties, Meanings, Value & More

Hubnerite (also spelled huebnerite or hübnerite) is a reddish-brown tungsten stone known for its shine and industrial uses. Learn hubnerite’s prices, history, and traits in this guide!

13th May 2024

Article Categories

News

News and events on Gem Rock Auctions

48 Articles

A-Z Of Gemstones

A-Z Of Gemstones

387 Articles

Technical Information on Gemstones

Technical Information on Gemstones

30 Articles

How To's

How To's is where you will find helpful articles from gem Rock Auctions on how to cut gemstones, select gemstones and buy gemstones.

9 Articles

Did You Know?

Did You Know?

78 Articles

Additional Gemstone Information

Additional Gemstone Information

59 Articles

Holistic Gemstone Information

Holistic Gemstone Information

34 Articles

Gem Rock Auctions Verified Sellers

Gem Rock Auctions Verified Sellers

3 Articles

Drawing Design Awards

Drawing Design Awards

2 Articles