On 24th February 2017, the Minister for Energy and Minerals of Tanzania has published the Mining Regulations 2017, which states that all mining companies with special mining licenses (SML) must go public by 23rd August 2017.
The mining companies with SML are required to float 30% of their issued and paid up share capital at the Dar Es Salaam Stock Exchange (DSE).
The previous regulation, which was published on October 2016, gave companies with a SML 2 years to list at DSE.
To date only one mining company is listed at DSE, cross-listed Acacia Mining that is involved in gold extraction and processing in Tanzania.
Local ownership is publicized as the main rational for the listing, to allow the wider Tanzanian population to participate in the mineral resources projects.
However, law firm Clyde & Co reminds that companies listed at the DSE are subject to increased transparency requirements, which in turn will assist the government of Tanzania to better monitor the payment of taxes.
In an attempt to make sure that mineral value addition activities are carried out within Tanzania, the Ministry of Energy and Minerals of Tanzania issued a ban on the export of mineral concentrates and ores for metallic minerals such as gold, copper, nickel and silver, with effect from 2nd March, 2017.
