Tanzania has come up with new mining law featuring the government to own 16 or more percent stake in the mining projects.
President John Magufuli said amid protests from opposition the bills were passed by the parliament last week and he has signed it to make it a law that has increased royalties tax on gold and other minerals.
He added issuing of new licences would be barred until things are put in order and existing licences with foreign investors will be reviewed again.
Addressing to a rally Magufuli said the country need to benefit from minerals and so safeguarding the natural resource wealth is important and not to end up with empty mining pits.
The new law will be raising the royalties tax for the metals by six percent. Earlier it was four percent.
The government could also renegotiate contracts with the new law for natural resources including gas. Right to international arbitration will be removed too.
The president said, “I would like to thank parliament for making the legislative changes. I signed the bills into law the same day Parliament concluded its session on July 5.”
Meanwhile, it is also learned the government will begin talks with the country’s biggest gold miner, London-listed Acacia Mining Plc, soon to resolve allegations of tax evasion.
The company was accused of tax evasion in 2016. However, Acacia has continued denying the allegations and lately said to be seeking an adjudicator to resolve the dispute.
AngloGold Ashanti and Petra Diamonds are other similar companies in Tanzania.