Nov 21, 2017 Last Updated 10:19 AM, Nov 20, 2017

Tanzanian President drafts in new mining laws

gold nugget on old map of AfricaABNABN - Tanzania’s President John Magufuli has passed new mining laws which require the government to own a minimum 16% stake in all projects.

The laws were fast-tracked through parliament last week, despite opposition from the mining industry body and various multinational firms with projects in the East African nation.

The laws will also increase royalties tax on gold and other minerals, while Magufuli confirmed that no new mining licenses would be issued and all existing licenses with foreign investors would be reviewed.

“We must benefit from our God-given minerals and that is why we must safeguard our natural resource wealth to ensure we do not end up with empty mining pits,” said Magufuli at a rally in his home village in Chato, Northwestern Tanzania.

Tanzania’s biggest gold miner Acacia Mining has been accused of tax evasion by the government, which led to Magufuli banning the exports of gold and copper in March.

@ABNetworkOnline

 

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