HomeBase MetalsNew mining laws for Tanzania

New mining laws for Tanzania

William Ngeleja,
Tanzanian minerals
and energy minister
 
Dar es Salaam, Tanzania — MININGREVIEW.COM — 12 August 2009 – In October of this year the government of Tanzania will be tabling new mining laws which will allow it to make investments in the country’s mines.
 
Announcing this here at a seminar on mineral resources development, minerals and energy minister William Ngeleja said the new legislation would give government the power to acquire a stake of between 10 and 15% in strategic gemstone mining.

“This will not be something automatic; it will very much depend on the government’s decision on whether a particular gemstone is strategic in its view or not,” he added.

Tanzania is Africa’s third-largest gold producer, after South Africa and Ghana, and holds the only known deposit of precious gemstone tanzanite. Barrick Gold Corporation “’ the world’s largest producer of the metal “’ third-ranking AngloGold Ashanti Limited and Australia’s Resolute Mining are among the large companies with mines in the country.

A panel appointed by the nation’s president in 2007 suggested higher royalty rates and fewer tax breaks to help boost revenue from Tanzania’s mineral wealth. Mining companies want government to reconsider, saying this will lower profits.

“We do not want to enact prohibitive tax laws; we want them to be attractive to investors, but where there are shortcomings we will definitely address them, “Ngeleja said, declining to provide more details.

“Tanzania’s mining legislation hasn’t been reviewed for 12 years,” he said. Government intends addressing compensation to those who will be required to leave areas identified for mining activities, and wants to introduce laws to enforce local procurement of goods and services.

“We want investors in the mining industry to buy locally those things which can be found in our local markets, but we will also make sure that the local markets meet the required standards,” the minister concluded.

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