Resource nationalism and local content in tanzania. Pdf land tenure and mining in tanzania researchgate. The first organized prospecting and mining in tanzania took place during the. Tanzania president john magufuli fired his mining minister and the chief of the staterun mineral audit agency on wednesday after an investigation into possible undeclared exports by mining. In 1894, during the german colonial period, gold was discovered around lake victoria and in 1909 sekenke became the first operating gold mine in the region. Regulation 16 of the mining mineral trading regulations, 2010 requires a nonresident who wishes to.
Improving mining revenue collection tanzanias mineral audit agency the challenge in the late 1990s, the mining sector in tanzania began to boom because of a slew of reforms, including the mineral code of 1998, aimed at attracting both local and foreign investors. Tanzania, gas, liquefied natural gas, mining, energy generation. In that year alone, tanzania attracted usd 58 million in mining. Mining laws and regulations zimbabwe covers common issues in mining laws and regulations including the mechanics of acquisition of rights, foreign ownership and indigenous ownership requirements and restrictions, processing, beneficiation in 28 jurisdictions. The procurement plan must be for a period of at least 5 years. Section 4 describes the mining sector in tanzania, the legislative framework from the late 1970s up until today, and some core facts on largescale mines and local content. This study has come at a time of sweeping changes in tanzanias mining sector, and in the larger national economy. The reforms have resulted into an improved administration of the sector and increased efficiency in monitoring and controlling minerals production and trading. Section 3 briefly examines the literature on resource nationalism and local content with a focus on experiences in subsaharan africa.
The proposed legislation is in the form of three special bill supplements. The mining sector is also marred with the worst form of child labor. Tanzanias new laws risk mining investment the west. Tanzania approved two laws that enable the government to renegotiate contracts with mining and energy companies as the state seeks a. The mining act, 2010 and its regulations controlling mining and. A perth lawyer specialising in international mining law has delivered a dire assessment of legislation introduced in tanzania last week. To ensure compliance with these new legislative provisions, every mineral right holder must prepare and submit to the mining commission a procurement plan indicating the proposed use of services, works, goods and services in tanzania.
Inspector, tanzania mining audit agency, or a public officer appointed under section 19 or a person designated as such by the commissioner under subsection 4 of section. Mining and quarrying activities in tanzania contributed 3. We advise on all stages of mining activity in mainland tanzania from initial exploration and the application for and renewal of a prospecting licence to the process for its conversion into a special mining licence and the ongoing development of the mine, joint venture arrangements, environmental issues and the raising of capital through stock exchange or by private equity. Coal mining has had m any developments over the recent years, from the early days of men tunneling, digging and m anually extracting the coal on. Major active mines in tanzania 2014 minemineralownership resourcegrademonthly throughput commissininglife of mine biharamulogoldstamigold1. The government of tanzania has, in recent years, focused on revitalizing its mining sector in order to attract foreign investment, with the goal of raising its contribution to tanzanias gross domestic product. Bkt, the company provides a further update on the proposed legislative changes with respect to the recent changes governing the natural resource sector in tanzania. The basic essence of mining law in most african countries is. Features library consists of a complete list of the various mining industries that cover, such as coal, diamonds, ironore, besides others, as well as corporate profiles and top. The country has gold reserves of 45 million ounces, generating revenue of over a billion usd. Mining law is regulated mostly by legislation in the form of. Following the extensive amendments to the mining act, cap.
The purpose of the publication is to gain a better understanding of what makes up the various laws in each african jurisdiction. On behalf of the mining commission, public service recruitment secretariat invites qualified tanzanians to fill 116 vacant posts as mentioned in the pdf file attached below. Since it was opened in 1940, the williamson diamond mine has produced 19 million carats 3,800 kg. In the last decade, the country has witnessed growth in mining sector with reputable mining companies e.
The first way in which proposed mining projects differ is the proposed method of moving or excavating the overburden. The companys prefeasibility study on chilalo in november 2015 the pfs did not provide for any tanzanian government free carried interest. Based on tanzania s development vision 2025 plan, the mining sector is expected to account for 10% of the gdp by that year. Tanzaniafrom mining to oil and gas unuwider united nations.
Tanzanias new mining rules impose restrictions on foreign. Section 10 of the mining act, which proposes government free carried interest of 16 percent non diluted shares. Foreignowned banks, insurance companies and law firms could be locked out of tanzanias mining sector as part of tough new regulations that aim. The list of the largest active mines in tanzania by 2014. In 2017, labor and criminal law enforcement agencies in tanzania took actions to combat child labor. Tanzania passes laws enabling renegotiation of mining. Indiana is an explorer in tanzania and does not have a mining license or special mining licence. Mining companies in tanzania add your free listing. Although mining in tanzania initially focused around gold, today the biggest projects include various minerals such as magnetite, chlorite, ilmenite, and pyrite with some of these mining projects, such as the liganga mining project, valued at up to zar6, 8 billion recent mining in tanzania has seen the country become the third largest gold producer in africa after south.
Tanzania kimberley process certificate granted by the kimberley process authorized officer from the tanzania kimberley process office under the commissioner for minerals. Children working in mining are exposed to many hazards such as mercury poisoning and entrapment when tunnels collapse, especially in smaller unlicensed operations. Pdf tanzania is a relatively new mining country, and mining has. Based on tanzanias development vision 2025 plan, the mining sector is expected to account for 10% of the gdp by that year. Sesa of the tanzanian sustainable management of mineral. The sekenke mine became the largest producer of gold in the. In all mining operations under a mining licence or special mining licence, the government shall have at least a 16% free carried interest in the capital of the mining company. The fourday event brought together around 90 participants, including miners, government officials and representatives from large mining companies and civil society organisations. Iieds second country dialogue on artisanal and smallscale mining asm took place in geita, tanzania, in november 2017. Government may acquire free carried interest and a paidup equity. Tanzania instead of kenya in april 2016 highlights economic competition within the region. Mining makes up more than 50% of the countrys total exports, of which a large part comes from gold.
Affordable and search from millions of royalty free images, photos and vectors. Mining companies in tanzania including dar es salaam, arusha, and more. The ntaka hill nickel project, is under a retention. The act provides that the minister shall, in consultation with holders of special mining licences, make regulations prescribing the minimum shareholding requirement and procedure for selling shares to tanzanian nationals, in accordance with the capital market and securities act 1994 cmsa, by. The economic and social research foundation esrf 51 uporoto street off ali hassan mwinyi road, ursino estate p. Jamhuri ya muungano wa tanzania, is a country in east africa within the african great lakes region. To be clear, free carried interest is essentially the government of tanzania getting a share in the profits of the mining company irrespective of. Tanzania has reformed its legal framework and fiscal regime to make a conducive environment in the mining sector. Mining in tanzania mining, particularly for gold, forms part of the heritage of tanzania. What follows are brief descriptions of the most common methods.
In all mining operations under a mining licence or special mining licence, the government shall have at least a 16% nondilutable free carried interest in the capital of the mining company. Barrick gold, ashanti anglogold, and resolute investing in largescale mines. Imtcl interstate mining tanzania company limited iptl independent power tanzania limited jv joint venture kia kilimanjaro international airport mbexco mbeya exploration company mcdp mwadui community diamond partnership mem ministry of energy and minerals. The mining act 2010 the 2010 act governs the mining industry in. Briefing regulations requiring mining firms to register on. Tanzanian president fires mining minister and chief of.