Tanzanian President John Magufuli signed into law new mining bills on July 10, Tanzanian President John Magufuli signed new mining bills into law, which require the government to own at least a 16% stake in mining projects, as reported by Reuters. The laws will also increase royalties tax on gold, copper, silver and platinum exports from 4% to 6%.
Magufuli said no new mining licenses would be issued until Tanzania “puts things in order” and that the government would review all existing mining licenses with foreign investors, according to Reuters.
Acacia Mining, which is currently in a dispute with the government over an export ban, recently announced that Notices of Arbitration were served in Tanzania on behalf of Bulyanhulu Gold Mine Ltd., the owner of the Bulyanhulu mine, and Pangea Minerals Ltd. (PML), the owner of the Buzwagi mine, regarding the current dispute between each and the government of Tanzania. This is in accordance with the dispute resolution processes agreed to by the government in their Mineral Development Agreements with BGML and PML. Tanzania accused Acacia of evading taxes and said an audit showed the miner had 10 times more gold in containers prepared for export than the company declared.
Acacia said a negotiated resolution is the preferable outcome to the current disputes and will continue to work to achieve this goal.
The government also informed Barrick Gold that it wished to continue its dialogue, but Acacia will not participate directly in those discussions when they commence. Any potential resolution that might be identified as a result will be subject to approval by Acacia, and the company will work with Barrick as necessary to support such discussions, the company said.
Acacia reported that all three of mines were continuing to operate in line with previous announcements.