Tanzania has changed the process of issuing large-scale mining licences. Earlier it was done by the ministry, but new rule needs approval of cabinet.
The East African country is fourth-largest gold producer in the world and lately under the leadership of President John Magufuli new regulatory regime has been placed.
The Minister of Justice and Constitutional Affairs Palamagamba Kabudi said henceforth cabinet will be involved in approving licences for large-scale mining companies to safeguard interests of the country.
He further continued, “For far too long, our mining laws have presided over the exploitation of our natural resource wealth instead of overseeing investments for the benefit of the nation.”
In 2017 the John Magufuli government placed a ban on the export of gold and copper extracts to boost revenue collection. It resulted with a huge loss to foreign-owned companies.
The ban will continue until mineral smelters are built. Until now some 27 companies have expressed interest to it in Tanzania.
After taking the chair of president in late 2015 John Magufuli sent shockwaves through the mining industry. Last year he suspended issuing new licences in the mining sector.
Discover more from Thenewsdoor
Subscribe to get the latest posts sent to your email.
