Africa-Press – Tanzania. THE country on Thursday marked exactly 60 years after independence while also celebrating great achievements in the minerals sector, which is one of the key drivers of the country’s economy.
Bold measures initiated by the government in the mining sector within the past six decades have Tanzania at 60: Nation realises mineral wealth seen the country gain handsomely from the lucrative minerals industry, supporting an equitable economy, helping the indigenous as well as supplying raw materials.
Among the government’s initiatives have been devising policies and reforming the country’s mineral law regime as it sought to ensure Tanzania churns more revenue from its abundant natural resources.
The landmark change in the extractive industry came in 2017 when the government passed a number of sweeping changes to the Mining Act of 2010 – the legal and regulatory framework that regulates the country’s natural resources. Regulations were also enacted in 2018 and later amended in 2019.
Three new laws that were enacted significantly increased government control over the mining sector in Tanzania. They are the Natural Wealth and Resources (Permanent Sovereignty) Act, 2017; the Natural Wealth and Resources (Review and Renegotiation of Unconscionable Terms) Act, 2017 and the Written Laws (Miscellaneous Amendments) Act, 2017.
They also stipulate new requirements for state participation in all mining companies, including at least16 per cent free-carried interest, which may be increased up to 50 per cent to match the value of historical tax benefits granted to mining companies.
It also increases royalty rates – for gemstones and diamonds from five to six per cent for metallic minerals such as copper, gold, silver and platinum group minerals from four to six percent.
The new law and regulations, against what some pessimists were thinking, has increased the number of local and foreign investors in the extractive industry and now Tanzanians are not only spectators, labourers or onlookers of how minerals are exported, but are main part of owners of mines through Twiga Minerals Corporation.
The Government, with Barrick Gold Corporation co-owns the company and hence Tanzanians are co-owners of Bulyanhulu, Buzwagi and North Mara mines, with full mandate and positions in the management and board of directors, hence able to oversee every decisions and activities regarding the rich natural resources of the country.
Beneficiaries of the feats are the miner’s locals and foreigners, the government and all Tanzanians as the revenue surge is directed to offer services for citizens and residents in the country.
The revenue increase is more than fourfold. Also, two years ago, the government introduced mineral trading hubs in various regions of the country, which boosted the sector, lifting up artisanal and small-scale miners as well.
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