Notable Amendments in the Act.
- Redefining Industrial Minerals and Energy Resources
- Expanding Definitions and Valuation
- Strategic Mineral Designation
- Facilitating Export and Revenue Management
- Streamlined Procedures and Stakeholder Engagement
On 24th January 2024 through The Written Laws (Miscellaneous Amendments) Act No 4 of 2024 in PART III make amendments of The Mining Act, [Cap. 123 R. E, 2019], amendments made to that law of our country, aimed at enhancing transparency, accountability, and sustainable practices within the sector.
NOTABLE AMENDMENTS IN THE ACT.
Redefining Industrial Minerals and Energy Resources
The first amendment targets clarity by refining the definition of industrial minerals to explicitly include limestone. Moreover, the definition of energy minerals gains precision with the addition of geothermal resources, highlighting the nation’s commitment to harnessing diverse energy sources. Additionally, the expansion of the term integrity pledge to encompass mineral rights holders, licensed dealers, and licensed brokers underscores the importance of ethical conduct across various stakeholders.
Expanding Definitions and Valuation
New definitions are introduced to streamline processes, such as geothermal resources and mineral auction. Additionally, the definition of mineral processing undergoes refinement to encompass a comprehensive range of operations involved in mineral extraction and refinement, ensuring thoroughness in valuation and extraction procedures. Moreover, adjustments to the threshold for mining licenses, from US$ 100,000 to US$ 5,000,000, aim to align licensing requirements with industry standards and investment realities.
Strategic Mineral Designation
The amendments empowers the Minister, with Cabinet approval, to designate certain minerals as critical or strategic based on economic, geopolitical, and industrial significance. This move underscores Tanzania’s proactive stance in securing vital resources essential for national development and global competitiveness.
Enhancing Compliance and Oversight
Amendments to the Act reinforce compliance and regulatory oversight. Stricter penalties are imposed for the submission of false information, ensuring integrity and transparency in data reporting. Furthermore, the establishment of the Mining Commission Mineral Laboratory enhances analytical capabilities, facilitating rigorous inspection and monitoring of mineral transactions.
Facilitating Export and Revenue Management
Amendments aim to streamline export procedures and revenue collection. Importers demonstrating compliance with royalty payments in the country of origin are exempted from additional royalty fees, incentivizing legitimate trade practices. Additionally, premium rates for gemstone exports via mineral auctions or international fairs aim to optimize revenue generation while promoting fair market practices.
Streamlined Procedures and Stakeholder Engagement
Several amendments focus on streamlining export processes and enhancing stakeholder engagement. By allowing the export of gemstones from government-organized auctions and fairs, Tanzania aims to stimulate market participation and revenue generation while ensuring adherence to regulatory frameworks.