The Tanzanian president has ordered the mining ministry to suspend the granting of new licenses, a statement from State House said on Tuesday, the latest twist in an ongoing row between the government and mining companies.
“President Magufuli has ordered the Ministry of Energy and Minerals to suspend the issuance of new special mining licenses and renewal of expired licenses,” the president’s office said in a statement
This follows the passing of three bills giving the resource-rich East African nation the right to tear up and renegotiate contracts for natural resources like gas or minerals, and removing the right to international arbitration.
The bills were introduced on Thursday and rapidly passed, despite pleas for more time from an association representing mining companies.
Tanzania is Africa’s fourth-largest gold producer and has made vast natural gas discoveries but remains one of the poorest countries in the world.
Mining companies that could be affected by the proposed law changes include AngloGold Ashanti, Acacia Mining Plc and Petra Diamonds.
Tanzania’s largest miner Acacia, majority owned by Barrick Gold, said on Tuesday that notices of arbitration were served on behalf of companies that own its Bulyanhulu and Buzwagi mines, which have been hit by an export ban.
