Tan­za­nia’s tough min­ing laws pay­ing of

The East African - - NEWS - By BEATRICE MATERU Spe­cial Cor­re­spon­dent

TAN­ZA­NIA HAS re­alised a 1.3 per cent GDP growth from its min­ing sec­tor, at­trib­uted to new strin­gent laws and reg­u­la­tions.

Min­ing now con­trib­utes around 4.8 per cent to the GDP, up from 3.5 per cent re­alised over the years.

Min­er­als Min­is­ter An­gel­lah Kairuki on Thurs­day at­trib­uted the new growth to the gov­ern­ment’s ef­forts to strengthen in­spec­tion and man­age­ment of the sec­tor and ef­fec­tively re­strict­ing il­le­gal trade in min­er­als.

“We aim for a larger piece of pie, at least 10 per cent of its con­tri­bu­tion to the coun­try’s GDP by 2025,” said Ms Kairuki.

In the first quar­ter of 2018, some 30,953kg of gold was pro­duced at the Aca­cia mines of Bulyan­hulu, Buzwagi, New Luika, North Mara and Geita, as well as Stamigold, a sub­sidiary of State Min­ing Cor­po­ra­tion (Stam­ico). An­other 2,021.4kg was pro­duced by small-scale min­ers. In 2015, the min­ers’ to­tal pro­duc­tion stood at 38,000kg.

Some 248,083.94 carats of di­a­monds were pro­duced by Wil­liamson Di­a­mond Ltd, Shinyanga, while El Hi­lal mines pro­duced 43,285.31 carats. The same mines pro­duced 191,407 carats in 2015.

Tan­zan­ite One re­ported 535.99kg of tan­zan­ite and 516,408.93kg of other min­er­als in Quar­ter 1 this year.

“Tan­zan­ite, in par­tic­u­lar, has paid roy­al­ties amount­ing to $242,660 in the three-month pe­riod, which is more than what we col­lected over the past three years,” said Ms Kairuki.

Tan­za­nia re­ceived roy­al­ties worth Tsh175.5 bil­lion ($77 mil­lion) from July 2016 to March 2018, com­pared with Tsh140.8 bil­lion ($63 mil­lion) in 2015.

Tan­za­nia sus­pended grant­ing new li­censes in July 2017 as it sought to reeval­u­ate ex­isted le­gal clauses.

Two new laws on min­ing give the gov­ern­ment the right to rene­go­ti­ate or dis­solve con­tracts and re­move the right to in­ter­na­tional ar­bi­tra­tion.

Dis­cus­sions be­tween the gov­ern­ment and Bar­rick Gold con­cern­ing the pro­posed frame­work agree­ment for Aca­cia Min­ing Plc’s op­er­a­tions in the coun­try are ex­pected to be fi­nalised mid next month.

“The talks have been con­struc­tive. We tar­get the first half of 2018 for the com­ple­tion of a de­tailed pro­posal for re­view by Aca­cia,” said Bar­rick in a state­ment.

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