africa commodities FDI Legislation Mining Tanzania Tax

Tanzania mining event to provide clarity on new legislation

The Government of Tanzania  has overhauled the fiscal and regulatory regime of its mining sector this year. Regulations will now make it compulsory for foreign-owned mining groups to offer shares to the government and local companies.

Furthermore, the new regulations will restrict the way in which foreign-owned banks, insurance companies and law firms conduct business with mining firms.

The Mining Regulations of 2018 are now in effect.

According to this regulation a contractor, sub-contractor, licensee (mining company) or other allied entity shall maintain a bank account with an indigenous Tanzanian bank and transact business through banks in the country.

The local content regulation imposes a fine of at least $5 million for mining companies that fail to implement the new requirements.

In terms of the amendments, the mineral right holder is required to submit a procurement plan of five years indicating the local services which will be used.

Among the notable features of the Mineral Rights Regulations is the requirement of giving an indigenous Tanzanian company first preference in the granting of mining licenses.

Furthermore, Tanzanian President John Magufuli has appointed a chairperson and commissioners for the country’s new mining commission, Idris Kikula.

The appointment of the mining commission and new regulations published this year mean the country can now resume issuing new mining licenses to investors.

The commission has started a process of issuing some 7 000 mineral licences that had been pending after the Tanzanian government placed a ban on new licenses in July last year.

AIE will host the Tanzania Mining Law, Local Content Policy & Tax Regime event on 26 & 27 July in Dar Es Salaam.

The briefing will provide insight into the new mining regulations and orders of Tanzania and will also offer two interactive workshops on the Tanzania Fiscal Regime and Local Content Policy.

Source: Mining Review Africa

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