Monday , March 4 2024

Tanzania’s regulation put on spotlight

African Influence Exchange (AIE) international researchers will next month host the Tanzania Mining Law, Local Content Policy & Tax Regime event in Dar es Salam.

The briefing will provide insight into the nine new mining regulations and orders of Tanzania and will also offer two interactive workshops on the Tanzania Fiscal Regime and Local Content Policy.

This year, Tanzania has overhauled the fiscal and regulatory regime of its mining sector this year, with new nine regulations, making it compulsory for foreign-owned mining groups to offer shares to the government and local companies.

The new regulations will restrict the way in which foreign-owned banks, insurance companies and law firms conduct business with mining firms.

According to this regulation a contractor, sub-contractor, licensee (mining company) or other allied entity shall maintain a bank account with an indigenous Tanzanian bank and transact business through banks in the country.

The local content regulation imposes a fine of at least $5 million for mining companies that fail to implement the new requirements.

In terms of the amendments, the mineral right holder is required to submit to the Commission a procurement plan of five years indicating the local services which will be used.

The Mineral Rights Regulations provide for how mineral rights holders can apply for mineral rights licenses and the procedure, costs and requirements for such licenses. It also provides for the expenditure a prospective mining licensee ought to spend, depending on the area which is being prospected.

Among the notable features of the Mineral Rights Regulations is the requirement of giving an indigenous Tanzanian company first preference in the granting of mining licenses. The Mineral Rights Regulations impose fines of between TZS 50 million to TZS 10 billion or a jail term between one to ten years upon conviction for default or non-compliance with the requirements.

The two regulations are among nine separate mining regulations issued by the mining ministry this year.

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