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 | 22 |



Tanzanian president splits energy and mining in ministry shake-up

  1. DAR ES SALAAM, Oct 7 (Reuters) - Tanzanian president John Magufuli split the energy and minerals ministry in two and appointed heads for the new ministries on Saturday, five months after sacking the p…
  2. {read by 35 people}


Tanzania: One Killed, Another Cheats Death Following Mine Accident in Geita

  1. Geita - A small-scale miner has been killed after he was trapped in a collapsed mine at Lwamgasa Village in Geita Rural District on Tuesday. The body of the victim was found Thursday following resc…
  2. {read by 19 people}


Tanzania to auction tanzanite from its source to curb smuggling

  1. Tanzania is expected to auction tanzanite in the mining site of Mererani on Saturday in efforts to sell the gemstones on its source to make the east African nation benefit from its natural resources. …
  2. {read by 35 people}


Two die in attack to Avocet Mining's convoy in Burkina Faso

  1. West Africa-focused Avocet Mining said Wednesday that two paramilitary police officers were killed and other two suffer injuries after unknown aggressors assaulted a convoy carrying fuel to its Inata …
  2. {read by 51 people}


Congo reinstates VAT on imports for mining companies

  1. KINSHASA, Aug 12 (Reuters) - Congo has reinstated a value added tax on mining company imports, the chamber of mines said on Saturday, part of what miners say is a deteriorating business climate in the…
  2. {read by 54 people}


Ghana's gold, diamond output to drop as govt curbs small-scale mining

  1. PANAJI, India, Aug 12 (Reuters) - Ghana's gold output is likely to drop sharply in 2017 because of curbs on the small-scale mining that lifted production last year but was causing damage to the enviro…
  2. {read by 130 people}



khjg