Minister says Tanzania will adopt new mining law in June

The Farmer · 2009-03-24T05:12:03+00:00

Although Tanzania expects to have a new mining law adopted before June, the nation's Energy & Mines Minister William Ngeleja said it will not significantly affect existing mining operations. Author: George Obulutsa DAR ES SALAAM (REUTERS) - Tanzania expects to have a new mining law and policy before June, but it will not significantly affect existing investors in the industry, the country's energy and minerals minister said on Friday. The mining sector accounted for 52 percent of the east African nation's exports in 2008, which were $4.61 billion. Tanzania is Africa's third largest producer of gold. "The policy and legislature will be in place and effective before June," William Ngeleja told reporters. "One of the objectives (is) to have a win-win situation. It's not to embarrass, neither frustrate the investor." The new law will be a culmination of about 10 years of review following critics' complaints that the country could benefit more from the lucrative sector. Among the changes expected include ownership rules and the rates of royalty paid on minerals like gold which currently stands at 3 percent and diamonds which earn 5 percent. Ngeleja said the new law will not significantly affect existing operations. "The changes that are going to be introduced will not so much affect the existing investments. For instance, we have agreed if there's a weakness in the royalty that they are paying now, we will make some improvements." Among the big investors in Tanzania's mining sector are Canada's Barrick, Resolute Mining of Australia and AngloGold Ashanti of South Africa. GOLD TO CUSHION SECTOR Tanzania also has deposits of nickel, coal and tanzanite, a precious stone. The government has also awarded 70 exploration licences for uranium. "In the next three years, if the conditions stay as they are, Tanzania will start mining uranium," Ngeleja said. Tanzania is worried the global economic slump will hurt its mining sector, especially due to falling prices of diamond and tanzanite. However, the prevailing high gold prices should help cushion the effects, Ngeleja said. "Since we have many gold mines, we see it as a leverage point. Although the harm of the economic crisis is global, the improvement of gold prices will help," he said. Tanzania exported 31.9 tonnes of the precious metal in 2008, down from 37.4 tonnes a year before, according to Bank of Tanzania statistics. The economic downturn has led U.S.-based Century Aluminum Co to postpone a proposal for a $3.5 billion smelter in Tanzania, and Canadian miner Xstrata Plc to stop plans for a $165 million nickel mining and extraction plant in the northwest of the country. (Editing by Simon Jessop)

Thread starter The Farmer
Start date Mar 24, 2009

The Farmer

JF-Expert Member

Mar 24, 2009

Sabasaba

JamiiForums uses cookies to help personalise content, tailor your experience and to keep you logged in if you register.
By continuing to use this site, you are consenting to our use of cookies.

Accept Learn more…

Back

Top Bottom

Forums

New posts

Minister says Tanzania will adopt new mining law in June

The Farmer

JF-Expert Member

Sabasaba

Senior Member

Our Community

Regional Communities