Tanzania President Says New Diamond Mining Sector Laws to be Enacted
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16.03.09, 12:02
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Mining
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According to This Day, the Tanzanian government plans to table a parliamentary bill for amendment of the country’s diamond mining legislation according to recommendations submitted by the presidential mining sector review committee chaired by retired Judge Mark Bomani. The latter began its work in November 2007.
A State House announcement indicated that Tanzania’s President Jakaya Kikwete discussed the impending amendments with the new CEO of Barrick Gold Corp, Aaron Regent this week.
The gold and diamond mining sector review report was released in May last year. Among its main proposals is the establishment of a minerals authority charged with the responsibility of supervising all mining activities in the country.
It also recommended raising the current royalty rates on gold and diamonds, and suggested that limited tax exemptions and incentives be granted to new investors in the gold and diamond mining sector.
According to the findings of the Bomani committee, Tanzania’s royalty rates on the value of gold and diamond exports from the country are currently half of those in Ghana and Botswana. The committee’s report proposed that royalties on rough diamonds and gemstones, such as tanzanite, should be increased to 7% from the current 5%, and 3% royalties on cut and polished diamonds should be charged.
The committee’s report also recommended fiscal reforms in order to ensure that the country gets a greater share of earnings from the sale of its minerals.
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By: Rachel Lieberman, Israel Diamond Industry Portal
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