After being criticised for failing to implement a mining bill that would bring greater benefit to the country, the Tanzanian government has now passed the law which increases both the royalty on minerals and ensures a government stake in future mining projects. The mining industry has been less than impressed. The Tanzania Chamber of Minerals and Energy, described the legislation as “distorted” and would “hinder further growth of the mining sector”. The relevant minister pointed out the “law was not enacted simply with the aim of pleasing investors … [but] with the goal of safeguarding the interests of Tanzanians in the country’s mining activities. He accused the Chamber of behaving like a spoilt child. Given the royalties are only rising to levels more common elsewhere in Africa, it is difficult not to agree.
British-based companies involved in Tanzania include African Barrick Gold and African Eagle Ltd. South African based Anglo Gold Ashanti (which has a subsidiary listing on the London Stock Exchange) mis also active in the country.