The mining companies on Wednesday rejected a new law in Tanzania raises royalties on minerals and prevents foreign firms from the mining of precious stones, saying it would further erode investor confidence.
In a joint statement issued by the Tanzania Chamber of Minerals and Energy, investors described the law as “distorted”, saying it would restrict future mining projects in the second economy of Africa.
“(The bill) will only serve to impede … the mining industry’s future growth as existing investors, limiting the use of existing and expansion plans and is linked to scare potential investors will look elsewhere to invest “said the chamber.
The Board of Tanzania, minerals and energy represents the interests of local and international investors in the sector.
Mining companies have said they hoped to persuade the Government to amend the new law before it received presidential assent, as he would have “serious repercussions” on the industry.
Tanzania is the largest gold producer in Africa in third place behind South Africa and Ghana, but also has reserves of uranium, nickel and coal. Gold exports alone earned him $ 1.076 billion in 2009, against 932.4 million dollars last year.
The Mining Act 2010 passed by Parliament on April 23 increased royalties on minerals like gold to 4 percent from 3 percent and requires mining companies to list on the Dar es Salaam Stock Exchange.
It also indicates that the Tanzanian Government will hold a stake in future mining projects and the country will no longer issue licenses gemstone mining to foreign companies.
source:rreuters
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