African mining governments are looking to increase the monetary benefits for all the stakeholders connected to mining projects by revising their mining laws – the latest including Cameroon and Kenya and Zimbabwe.
This is according to an EY April 2015 report focused on resource nationalism across the globe.
EY says a new mining code bill is currently before the Cameroon Parliament, following a consultation period in early March between government representatives, the mining sector, development partners and the public.
“The code has been revised following calls that the 2001 mining code was too favourable for miners and did not benefit the other stakeholders sufficiently.”
Kenya plans to enact a new mining law later in 2015 to provide investors with greater stability and incentive to invest EY continues. The Mining Bill should be passed through the Senate before 30 June 2015.
Under the new law, the government will impose royalty rates from 1% gross sales value of industrial minerals to 10% for coal, titanium ores, niobium and rare earth elements and 12% for diamonds.
Zimbabwe is taking its diamond sector a step further after the government announced it intends to nationalise its diamond mines into a consolidated mining company.
The Zimbabwe government will hold a 50% stake in the consolidated company and the remaining 50% held by current diamond miners. “The companies’ shareholding will be based on size of operation and a valuation of equipment. The merger diamond company will include Murowa Diamonds, the only remaining Rio Tinto asset in Zimbabwe,” the EY report concluded.