Minerals chamber say some features in new natural resources bill bad for investment

Dodoma. The Tanzania Chamber of Minerals and Energy (TCME) wants the Parliament to amend some of the provisions in the natural resource bills, saying some of them will discourage investment if they are endorsed as they are.

Presenting the chamber’s views on new bills on Tanzania’s natural resources to a Parliamentary Standing Committee here on Saturday, the TCME executive secretary, Mr Gerald Mturi, said the proposed laws contain some provisions that may affect the country’s investment climate.

The bills in question include the Written Laws (Miscellaneous Amendments) Act, 2017, the Natural Wealth and Contracts (Review and Renegotiation of Unconscionable terms) Act, 2017 and the Natural Wealth and Resources (Permanent Sovereignty) Act 2017.

TCME is not happy with Sections that deal with ownership of mines and increase in royalties, among others, as proposed in the Written Laws (Miscellaneous Amendments) Act, 2017.

It also wants the proposed law to be clearly define what Raw Minerals are as well as on the legal ways of resolving disputes between the government and investors when they occur in the process of executing their various assignments in line with the law.

TCME – which comprises of over 50 mining companies and associates across the country - is also unhappy with provisions in the Natural Wealth and Contracts (Review and Renegotiation of Unconscionable terms) Act, 2017 and the Natural Wealth and Resources (Permanent Sovereignty) Act 2017 which empower the Parliament to review any arrangements or agreement made by the Government relating to natural wealth and resources as well as those aspects that empower Tanzania’s courts against arbitration powers of international courts.

Debating the views however, Mr Hussein Bashe, the Member of Parliament for Nzega Urban (CCM), Selemani Zedi (Bukene - CCM) and the Minister of State in the President’s Office (Regional Administration and Local Government Authorities), Mr George Simbachawene, said some issues were missing in Mr Mturi’s arguments.

According to Mr Bashe, it is not true that investors will be discouraged by a provision that says the government must own between 16 and 50 per cent of shares in a mining company even as the same firm is required to offload up to 30 per cent of shares to the public via the Dar es Salaam Stock Exchange (DSE).

“The 30 per cent will be offload by both the government and the private firm. Similarly, it makes little sense for a company that is fully owned by investors at the London Stock Exchange to claim that ownership of its shares by our government and the Tanzanian public will discourage investors,” he said.