As part of new measures aimed at further tightening control of the mining industry, large-scale mining licenses in Tanzania will only be issued following Cabinet approval, Reuters reported June 2, citing Minister of Justice and Constitutional Affairs Palamagamba Kabudi.
According to the report, the country delegated issuing large-scale project licenses to a newly appointed mining commission, which succeeds the authority of its mining ministry.
"The whole government, through the cabinet, will now be involved in approving licenses for large-scale mining companies to make sure that national interests are safeguarded," Kabudi said in the newswire's report.
In addition, the country will no longer sign new mineral development agreements, which guarantee a stable tax regime for existing mining companies. Companies holding existing mineral development agreements include Acacia Mining PLC and AngloGold Ashanti Ltd.
In 2017, the Tanzanian Parliament unanimously passed an amendment to mining and tax laws that makes it mandatory for the government to own at least a 16% interest in mining projects in the country with a provision to further up its stake.
It also signed two other bills into law that allow the government to renegotiate or dissolve contracts with mining and energy companies. The laws also removed the right to international arbitration.
Under the new mining regime, Tanzania revoked a retention license for Barrick Gold Corp. and Glencore PLC's undeveloped Kabanga nickel joint venture in May.
