AngloGold 'notes' new Tanzanian mining laws | Fin24
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AngloGold 'notes' new Tanzanian mining laws

Jul 05 2017 17:52
Liesl Peyper with Bloomberg

Cape Town – AngloGold Ashanti says it notes that the Tanzanian Parliament approved legislation that will enable its government to renegotiate contracts with mining and energy companies.

The bills, which were first tabled for comment on June 29, 2017 will be sent to President John Magafuli for his assent. Once signed the legislation will be published in Tanzania’s government gazette and will come into effect.

The new mining laws are aimed at enabling the state to get a greater share of Tanzania’s natural resources, Bloomberg reported.

AngloGold Ashanti said it will, in the context of its existing Mine Development Agreement in Tanzania, analyse these laws once they are passed and will provide updates in due course.

According to its website, AngloGold Ashanti has one wholly owned and managed operation in Tanzania – Geita - the largest single gold mining operation within the group.

READ: Africa squandering its golden opportunity - CEO 

Geita is located in northwestern Tanzania, in the Lake Victoria goldfields of the Mwanza region. The country is the third-biggest gold producer in Africa. 

The Tanzania Chamber of Minerals and Energy has opposed the new legislation, saying the implications for the industry will be significant. 

Under Magufuli’s presidency, Tanzania’s mining industry is seeing a major overhaul. The country aims to double mining’s contribution to GDP to 10% by 2025.

READ: SA gold mines are on the brink of death 

In March this year, Magufuli banned mineral exports and ordered an audit to identify loopholes that he said lead to income losses.

In addition, the Tanzanian president ordered the Energy and Minerals Ministry to neither issue new mining licenses nor renew expired ones, his office said in an emailed statement on Tuesday, without giving details.

Tanzania holds some 55 trillion cubic feet of natural gas reserves. 

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