Tanzania passes laws on renegotiation of mining, gas contracts

Source: ROUTERS

DAR ES SALAAM (Reuters) - Tanzania's parliament passed two laws on Monday allowing the government to force mining and energy companies to renegotiate their contracts, despite pleas from the mining association for more time.

Businesses have complained that they feel President John Magufuli is unfairly squeezing them through a strict interpretation of tax laws, increased fines and demands they rapidly list on the local stock markets.

Magufuli has said the reforms will increase transparency and revenues.

There are three bills in total covering natural resources contracts, sovereignty and amendments to existing laws and they could allow the government to renegotiate or dissolve contracts.

"Parliament has passed two (laws) legislation - the Natural Wealth and Resources (Permanent Sovereignty) and the Natural Wealth and Resources Contracts (Review and Re-negotiation of Unconscionable Terms) bills," the state-run Tanzania Information Services said in a statement.

The statement did not mention the third bill, which is also in parliament, but the justice minister Palamagamba Kabudi said on Friday that all three would be passed this week.

The bills follow months of wrangling between mining companies and Magufuli's government. The government has repeatedly targeted Acacia Mining, majority-owned by Barrick Gold. Acacia has most of its productive assets in Tanzania and its share price has nearly halved since March.

The government had submitted the bills to parliament on Thursday and the legislation was fast-tracked despite calls from the mining industry lobby, the Tanzania Chamber of Minerals and Energy, for a delay to allow more consultations.

"The chamber is concerned at the lack of stakeholder consultation prior to the publication of the proposed legislation and the short notice set aside for consultation, given the material impact it will have on almost every area of the mining industry," the chamber said in a statement on Monday before the bills were passed.

| 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10 | 11 | 12 | 13 | 14 | 15 | 16 | 17 | 18 | 19 | 20 | 21 |



Mercury: Slow killer in Uganda's gold mines

  1. Inside one of the dozens of gold camps that dot the foothills and valleys of Mubende in central Uganda, the hustle and bustle is astounding. 'Saigon City" nestled in the valley of Kayonza; Kitumbi …
  2. {read by 38 people}


East Africa leads efforts to cut use of mercury in mining

  1. East Africa is driving a global initiative to phase out the use of mercury in mining, as it is harmful to human health and the environment. Kenya, Uganda, Tanzania, Ethiopia and Burundi have announ…
  2. {read by 52 people}


Tanzania passes laws on renegotiation of mining, gas contracts

  1. Tanzania's parliament passed two laws on Monday allowing the government to force mining and energy companies to renegotiate their contracts, despite pleas from the mining association for more time…
  2. {read by 105 people}


Tanzania's president suspends granting of mining licenses

  1. The Tanzanian president has ordered the mining ministry to suspend the granting of new licenses, a statement from State House said on Tuesday, the latest twist in an ongoing row between the government…
  2. {read by 149 people}


Kenya's economy suffers due to mercury pollution

  1. Mining communities in Kenya lose between Sh174 and Sh342 billion in earning potential every year due to mercury contamination, according to a new study published in The Journal of Environmental Manage…
  2. {read by 119 people}


Hakirasilimali opinion on the Natural Resource Wealth Bills of 2017

  1. At a public hearing today, HakiRasilimali submitted to the parlimentary committees on Energy and Minerals and Constitutional and Legal Affairs its opinion on the following bills tabled in parliament o…
  2. {read by 110 people}



khjg