Tanz.government extremely mining friendly "government was extremely mining friendly"
Not anymore according to this press release. Looks like Tanzania would like to follow our latin America friends Chavez and Morales. Tanzania is planning to kill the golden egg chick.
Tanzania Sets Up Taskforce To Review Mining Contracts
May 2, 2006 10:25am ET
By Dow Jones Newswires
The Tanzanian government has put in place a task force to review mining contracts awarded to all foreign mining companies, an industry official told Dow Jones Newswires Tuesday.
An official at the country's Chamber of Minerals said by telephone from Dar es Salaam, the task force is already in place and is expected to start work this month.
The official said that the task force consists of experts from the ministries of energy and minerals, justice and constitutional affairs, economic planning and empowerment and finance.
Addressing the nation Monday, President Jakaya Kikwete said a serious review of the agreements in the mining sector would be undertaken to bring into line with Tanzania's needs.
"Tanzanians have the right to benefit from the natural resources of their country, which is endowed with vast minerals" he said, adding that the mining contracts benefits only foreign investors because the Minerals Act and the contracts entered into with investors place many impediments in how local people can benefit from the industry.
"As it is now, it seems the person with massive capital and technology benefits more than the local people. It is not right for one party to benefit at the expense of the other," he said.
Tanzania's gold mining industry has just picked up after years of unimpressive performances mainly due to lack of investment. The passing of the current Minerals Act in 1998 attracted companies like Barrick Gold Corp. (ABX), Anglogold Ashanti Ltd. (AU), and Resolute Mining Ltd. (RSG.AU), all of which have since opened mines in the country, six large-scale gold mines have been opened since 1998 and the seventh one, owned by Iamgold Corp. (IAG), is underway.
This has made Tanzania Africa's third largest gold producer after South Africa and Ghana. Tanzania's Ministry of Energy and Minerals forecasts 2006 gold output of 1.75 million troy ounces.
-By Nicholas Bariyo, Dow Jones Newswires, 256 752 624 615; bariyonic@yahoo.co.uk
(END) Dow Jones Newswires
05-02-06 1025ET
Copyright (c) 2006 Dow Jones & Company, Inc.