Dar es Salaam, Tanzania — MININGREVIEW.COM — 26 April 2010 – The government of Tanzania has passed a new mining law that increases the rate of royalties paid on minerals like gold from 3% to 4%, and requires the government to own a stake in future mining projects.
The legislation published here says the new Mining Act 2010 also requires mining companies to list on the Dar es Salaam Stock Exchange.
It adds that as part of the new legislation, Tanzania will not issue new gemstone mining licences to foreign companies. Current agreements with foreign mining companies remain unchanged.
“This bill makes comprehensive provision for prospecting for minerals, mining, processing and dealing in minerals; for the granting, renewal and termination of mineral rights; for payment of royalties, fees and other charges; and for any other relevant matters,” said the legislation.
“The bill is a response to challenges faced and experience gained during 12 years of the implementation of the Mining Act enacted in the year 1998,” it added.
Mining stakeholders have said that said they will issue a joint statement on the new mining law today.
“The government will increase revenues a lot thanks to the new mining legislation, but it might send a negative signal to investors and might impact on foreign direct investment. I’m worried on that,” opposition MP Zitto Kabwe told Reuters.
Kabwe, who was a member of a commission appointed in 2007 to review Tanzania’s mining sector, said the new legislation would bring significant changes to mining policy. Government’s stake in future mining projects would be determined by the level of investment in each individual joint venture, Kabwe added.
Tanzania earned $57 million from mining royalties in 2009, but is expected to double this amount after the new mining law comes into force, he said.