Tanzanian President John Magufuli said on Monday he has signed into law new mining bills which require the government to own at least a 16 percent stake in mining projects. The laws, which also increase royalties tax on gold and other minerals, were passed by parliament last week despite opposition from the mining industry body.
Magufuli reiterated on Monday that 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.
“We must benefit from our God-given minerals and that is why we must safeguard our natural resource wealth to ensure we do not end up with empty mining pits,” Magufuli told a rally in his home village in Chato district, northwestern Tanzania.
The president has sent shock-waves through the mining community with a series of actions since his election in 2015, which he says are aimed at distributing revenue to the Tanzanian people.
The new mining laws, which were fast-tracked through parliament, raise royalties tax for gold, copper, silver and platinum exports to six percent from four percent.
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