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Petroleum / Mining in Tanzania

  • Museveni, Magufuli Reaffirm Political Will for Oil Pipeline

    TANZANIA, 2017/08/07 President Museveni and his Tanzanian counterpart John Pombe Magufuli, last Saturday laid the initial foundation stone for construction of the proposed East African Crude Oil Pipeline (EACOP), as a gesture for joint political will, for the development of the multi-billion dollar project within the stated timeframe. The event that attracted hundreds of residents at Chongoleani, in the northerly seaport city of Tanga in Tanzania, as well symbolised the start of the construction of the $3.5b (about Shs12.6 trillion) pipeline. It will run from Hoima in mid-western Uganda to Tanga port at the Indian Ocean.
  • All Bets Are Off As Magufuli's Resource Nationalism Moves Up a Gear in Tanzania

    TANZANIA, 2017/08/01 The Tanzanian government has asked Acacia Mining, a subsidiary of the world's major gold mining company Barrick Gold, to pay approximately USD$190 billion in revised taxes, interest and fines. This new development is a game changer in a dispute that pits mining companies against President John Magufuli's government. It makes both nationalisation and mine closures additional likely. Until this revised tax notice was served, the overhaul of Tanzania's mining regime had a great transaction going for it. Previous policy had given miners an easy ride. Low taxes and generous license terms were sweetened by further tax breaks and exemptions.
  • Tanzania: Searchlight Cast On Barrick the Government Seeks Fair Share of Mining Sector Revenues

    TANZANIA, 2017/08/01 FINALLY, the appropriate team formed by President John Magufuli is down to business as it started, yesterday, discussions with officials from Barrick Gold, the parent company of Acacia Mining, on its operations in Tanzania as the government seeks to reap its equitable share of proceeds from the lucrative mining industry. This comes next two presidential committees exposed anomalies in declarations of the quantity and price of copper concentrates produced by the company. The Minister for Justice and Constitutional Affairs, Prof Palamagamba Kabudi, will lead the Tanzanian team while Mr Richard Williams, the Chief Operating Officer for Barrick Gold, is leading the team from the miner.
  • Acacia Mining aims resume dividend if Tanzania export ban ends

    TANZANIA, 2017/07/22 Acacia Mining aims to reinstate its dividend in early 2018 if Tanzania ends a concentrate export ban that forced the miner to abandon a payout for the initial time, it said on Friday. Shares were down 10 % by 1226 GMT next before touching their lowest since February 2016 at 242 pence. Since the ban was imposed in March the London-listed Acacia, majority owned by Barrick Gold, has nearly halved in price and is burning $10 million to 15 million of cash a month.
  • Tanzania's Magufuli threatens to shut mines if firms delay tax talks

    TANZANIA, 2017/07/22 Tanzania's President John Magufuli has threatened to close down all gold mines in the country if mining companies delay talks with his government aimed at resolving allegations of tax evasion. The announcement by Magufuli, nicknamed "the Bulldozer" for his forceful leadership style, marks a further escalation of a dispute with foreign companies like Acacia Mining over export revenues.
  • The SADC Wrap: Magufuli marches on against mines

    BOTSWANA, 2017/07/17 Tanzania’s president John Magufuli last week left mining houses reeling next signing into law a set of bills that would radically alter the playing field. The new laws allow the country to renegotiate all of its current mining contracts, increase royalties, and partially nationalise mining projects. “The laws as well deny the rights of mining companies to seek international arbitration and relief in the event of a dispute with the government,” reports The West Australian.
  • Tanzania: Miners, Govt to Benefit From Resource Estimation Project

    TANZANIA, 2017/07/16 The government is expected to spend a whopping Sh8.2 billion for mineral resources estimation, a project that would end challenges facing small scale miners. The project, which is bankrolled by the World Bank (WB), will be carried out at seven centres countrywide during the initial phase. Speaking at Buhemba mining area yesterday, the Acting Director of Exploration and Drilling from National Mining Corporation (Stamico), Mr Alex Rutagwelela, said the project would result into a win-win situation where the miners and government will benefit equally.
  • Africa rejects Europe's 'dirty diesel'

    BOTSWANA, 2017/05/04 Ghana and Nigeria are the first countries to respond to reports of European companies exploiting weak fuel standards in Africa. Stricter limits on the sulfur content of diesel will come into force on July 1. Governments in West Africa are taking action to stop the import of fuel with dangerously high levels of sulfur and other toxins. Much of the so-called "dirty diesel" originates in Europe, according to a report published by Public Eye, a Swiss NGO, last year. The report exposed what Public Eye calls the "illegitimate business" of European oil companies and commodities traders selling low quality fuel to Africa. While European standards prohibit the use of diesel with a sulfur content higher than 10 parts per million (ppm), diesel with as much as 3,000 ppm is regularly exported to Africa.
  • Tanzania encourages investment to broaden mining sector base

    TANZANIA, 2016/12/24 New listing requirements for Tanzania’s mining companies are key components of the government’s plans to use the upstream extractive sector to stoke broader economic increase. Initial mooted in 2010, the government announced in September new regulations stipulating that companies holding appropriate mining licences – which extend up to 25 years – must inventory at least 30% of their shares on the Dar Es Salaam Stock Exchange (DSE) within two years or risk having their licence cancelled.
  • Tanzania: Dar Mulls Adding Tanzanite in Foreign Reserves

    TANZANIA, 2016/12/08 The government is contemplating to include Tanzanite gemstones in national foreign reserves at the Central bank instead of gold which is shunned due to price instability, the Minister for Finance and Planning, Dr Phillip Mpango has said. Dr Mpango said in Parliament yesterday that the Central Bank was considering the idea of instating the rate and extraordinary gemstones in the reserves because of its price stability in the world market and the fact that it is mined in Tanzania.