Story by Beatrice Materu
Tanzania is set to
restructure its troubled mining sector after the government gave mining
companies three months to comply with new guidelines, which give local
mining firms and financial institutions preference.
Part of the regulations state:
"A contractor,
subcontractor, licensee or other allied entity shall before the
commencement of mining activities submit a plan to the Commission
specifying the role and responsibilities of the indigenous Tanzanian
company; the equity participation of the indigenous Tanzanian company;
and the strategy for the transfer of technology and know-how to the
indigenous Tanzanian company,"
"Mining companies will have to open and operate bank accounts in a "100 per cent" Tanzanian-owned banks.
The rules give the
government the right to oversee the implementation of these regulations,
evaluate and review contracts as see fit.
President John Magufuli has previously complained that the country is not benefiting as it should from its resources.
Mid last year,
Tanzania's parliament pushed for new laws on its extractives industry:
The Natural Wealth and Resources Contracts (Review and Re-Negotiation of
Unconscionable Terms) Bill, 2017; the Natural Wealth and Resources
(Permanent Sovereignty) Bill, 2017; and, the Written Laws (Miscellaneous
Amendments) Act, 2017.
The new guidelines
pushed for the mandatory listing of mining companies on the Dar es
Salaam Stock Exchange by August last year as part of measures aimed at
increasing transparency and sharing out wealth from the country's
natural resources.
President Magufuli
signed the Mining Act in July last year and it requires the government
to own at least a 16 per cent stake in mining activities. The troubled
mining sector generates about 3.5 per cent of the country's GDP.
The government
accused gold mining company Acacia, of tax evasion and under-declaring
amount and types of minerals exported. The government banned it from
exporting gold/copper concentrates, which account for over 50 per cent
of the company's operations.
Other major
foreign-owned mining companies that will be affected by the new legal
regulations on local content include the South African AngloGold Ashanti
and British mining company Petra Diamonds.
No comments:
Post a Comment