The new Act increases the royalty paid on minerals, including gold, from 3% to 4% and requires the government to own a stake in all future mining projects.
The new law also requires mining companies to list on the Dar es Salaam Stock Exchange and make it mandatory for the government to set aside specific areas for small-scale miners to avert conflicts between artisanal miners and big mining companies.
The several foreign mining companies currently operating in Tanzania are said not to be affected by the new law.
The bill also seeks to stimulate the mining sector and substantially increase its contribution to the national income.
“It has been established that the sector, despite growing rapidly, is not doing that well when it comes to contribution to the national income. We want to make sure that the sector’s growth corresponds with its contribution to the national income,” Energy and Minerals Minister William Ngeleja said.
Tanzania is Africa’s third largest gold producer after South Africa and Ghana. Gold exports reached $1.076 billion in 2009, up from $932.4 million the previous year.
Other minerals that have attracted most investors in the recent years are base metals, gemstones and diamonds that have always been the mainstay of the country’s mineral production.