• Africauptodate

Tanzania Orders Acacia Mining's Senior Staff To Leave As Their Dispute Escalates

In what looks like an escalation of the dispute between the government of Tanzania and Acacia Mining, the former is reported to have asked senior staff of the latter to leave the country on July 21, 2017. Senior local staff of the company are also reported to have been questioned by authorities. The dispute started in 2016 over alleged tax evasion by Acacia Mining, by which Tanzania lost billions of dollars in tax revenues. The allegations included export of undervalued gold concentrates by Acacia Mining. As a result of the dispute, the government of Tanzania banned export of gold and other mineral concentrates until local mineral smelters were put in place for their processing. Furthermore, the government enacted two new laws in July 2017, namely: 1) The Natural Wealth and Resources Contracts (Review and Re-Negotiation of Unconscionable Terms) Act, and 2) The Natural Wealth and Resources (Permanent Sovereignty) Act The new laws enable the government to re-negotiate contracts pertaining to the mining and energy sectors. Furthermore, they require state ownership in mining projects, of at least 16% to a maximum of 40% stake. Also, the laws increase royalties tax for gold and other minerals from 4% to 6%; and prohibit involvement of foreign courts and tribunals in local mining disputes. According to many sources, Tanzania's new legal framework for the mining and energy sectors is aimed at stopping its vast natural resources been looted by consent through bad contracts with foreign investors, and to ensure the country gets a larger share of the revenues from the resources. Tanzania is the 6th largest economy in Sub-Saharan Africa. Read more 1) https://www.businesslive.co.za/bd/world/africa/2017-07-21-tanzania-asks-miner-acacias-foreign-staff-to-leave/ 2) https://www.bloomberg.com/news/articles/2017-07-04/tanzania-lawmakers-back-bills-enabling-state-to-scrap-mine-deals _____________________________ © 2015 - 2017 Kimaryo Foundation. All Rights Reserved