HomeBase MetalsNew Tanzanian mining law a threat to the industry

New Tanzanian mining law a threat to the industry

Tanzanite One’s
tanzanite processing
plant in Tanzania
Dar es Salaam, Tanzania — MININGREVIEW.COM — 04 May 2010 – The Tanzania Chamber of Minerals and Energy says the East African nation’s new Mining Bill threatens to significantly reduce the mining industry’s competitiveness.
In an e-mailed statement issued here, the chamber said it planned to appeal strongly to the government to take urgent corrective measures before extensive damage was done to Tanzania’s budding mining industry.  

Tanzania is Africa’s third-largest gold producer, after South Africa and Ghana, and holds the only known deposit of tanzanite, a precious gemstone. AngloGold Ashanti Limited, African Barrick Gold Limited and Tanzanite One Plc are among companies with mines in the country.

The legislation approved by Tanzania’s parliament on 23 April will raise gold-royalty payments from 3 to 4%. The chamber said it was concerned that the bill also created uncertainty on possible further changes to the fiscal regime.

“The approved bill, in the chamber’s opinion, will only serve to hinder further growth of the mining sector as existing investors resort to curtailing existing and expansion projects, and it is bound to scare potential investors who will look elsewhere to invest,” the statement said.

Energy and mineral resources minister William Ngeleja did not answer calls from Bloomberg News to two of his mobile-phone numbers seeking comment.