Deputy Minister of Minerals, Dr. Steven Kiruswa, has stepped in to mediate the ongoing dispute at the Amazonite gemstone mine in Mandagawa Hamlet, Quandeng Village, Karatu District, Arusha, between Paradiso Minerals Limited and technical support investor Zhao Hao.
Opening the dialogue session, Dr. Kiruswa emphasized that the government’s priority is to safeguard the rights of all parties while ensuring compliance with the laws of the United Republic of Tanzania, particularly the Mining Act, Chapter 123, and the 2025 Technical Assistance Regulations.
To resolve the conflict, Dr. Kiruswa directed that Paradiso Minerals Limited allow Zhao Hao to extract minerals up to a total of 70 containers equivalent to TZS 1.4 billion, which has already been paid by Zhao Hao.
After reaching this threshold, the existing contract will be terminated to pave the way for a new agreement fully aligned with the 2025 Technical Assistance (TSA) Mining Regulations.
Additionally, the government has given Paradiso two weeks to address safety deficiencies in the mine, including environmental management, worker safety, the establishment of a formal mining plan, mine closure procedures, and a knowledge-transfer strategy for local workers.
Dr. Kiruswa underscored that technical assistance plays a crucial role in supporting small-scale miners by introducing modern technology and expertise, but he warned that it must always be implemented in accordance with national laws, regulations, and procedures.
Paradiso Minerals Limited’s lawyer, Sabato Ngogo, said the initial agreement required all minerals produced to be sold at TZS 800 per kilogram, and the company has already received TZS 1.4 billion as an advance payment.
However, Ngogo noted challenges arising from Zhao Hao’s preference for larger, high-quality stones, leaving smaller stones unsold and necessitating a price review to reflect actual market conditions.
Zhao Hao’s lawyer, Wallace Mfuko, explained that the TZS 1.4 billion payment was made through monthly installments of TZS 100 million, regardless of actual production.
He added that his client prefers larger stones to meet market demand and proposed a three-month extraction period to match the value already paid before renegotiating prices.
Earlier, on March 17, 2026, Paradiso Minerals Limited filed an urgent petition at the Arusha High Court to prevent the disputed minerals from being transported.
The court issued a temporary order prohibiting Zhao Hao from moving the minerals until the main case is resolved.
Previously, Arusha Regional Mining Officer, Godson Kamyanda, reported that an inspection of the mine revealed significant risks to the environment, workers’ safety, and property.
As a result, his office suspended production on January 19, 2026, until corrective measures are implemented.
The government has called on all small-scale miners in the country to adhere strictly to legal requirements when engaging in technical assistance arrangements with investors.
