Monthly Archives: April 2017

Tanzania: Gold Regains Status As Tanzania’s Top Export

    N.B: Edited

The Citizen (Dar as Salaam)
27th April 2017

Dar es Salaam — Gold has regained its prestigious position as Tanzania’s largest non-traditional goods export, thanks to a rise in value at the global market, the central bank says.

The Bank of Tanzania (BoT) also indicates that there is an increase in volume of gold produced locally. The rise in export value of gold comes amidst a controversy over the government’s ban on the export of mineral concentrates that has affected production at Acacia, Tanzania’s largest gold miner.

BoT’s Monthly Economic Review for March released recently also shows that the mineral forms the major goods export because of reduced exports of manufactured goods [i.e. “The Resource Curse”]. In the year to February 2017 gold exports amounted to $1.46 billion (Sh3.2 trillion) being an increase from $1.16 billion registered in the year to February 2016. “Gold export improved by 25.6 per cent to $1.46 billion in the year ending February 2017 due to recovery in price at the world market and increase in volume,” the BoT report reads in part.

On the contrary, the report shows, the annual export value of manufactured goods fell to $1.0 billion (Sh2.2 trillion) in the year to February 2017 from $1.32 billion in the year ending February 2016 due to a reduction in the export of edible oil, as well as iron and steel products.

Gold exports had dominated exports of goods for more than a decade until 2013, when it started to decline, owing to falling prices at the global market and its place taken by manufactured goods. Despite regaining its position as Tanzania’s largest export, gold is still peforming poorly.

The mineral reached its peak in 2012, when it passed the $2 billion annual export value mark. The export value then started declining in 2014, when it registered $1.5 billion in the year to February. It continued declining reaching $1.16 billion in the year to February 2016.

Price of gold increases

The price of gold has recovered in the last few years as investors shifted to the precious mineral for safe haven amid growing volatility in global equity markets.

The BoT reports indicates that the price of a troy ounce of gold increased by 10 per cent from $1,192.1 (Sh2.4 million) in February 2016 to $1,234.2 in February 2017. This was well below the $1,742 per troy ounce of February 2012, when gold exports were above the $2 billion mark.

Increase in volume

The BoT report does not give details of gold export volumes, but financial results released by Acacia revealed an increase in gold production in its three mines in the first quarter of this year.

The report shows that gold production in the first quarter increased by 15 per cent compared to the first quarter of 2016 to 219,670 ounces.

Acacia revenue also increased by 6 per cent to $234 million.

AngloGoldAshanti, Tanzania’s second largest gold miner that operates Geita Gold Mine, said in its latest report that production reached 134,000 ounces in the quarter ending December 2016 compared to 125,000 ounces produced in the previous quarter.

The Tanzania Mineral Audit Agency says in its latest report that the country exported 1.37 million troy ounces with the value of $1.63 bilion. Royalty paid by the gold miners was $63.2 million (Sh104.9 billion), while total taxes paid by gold miners to the government was Sh355.3 billion.

Background

Tanzania’s mining sector is gold focused and ranks as Africa’s fifth largest producer after South Africa, Ghana, Sudan and Mali. Production reached 40.4 mt/y in 2011 from 35.6 mt/y in 2010.

Tanzania’s top gold producers are: Acacia, which now operates three mines in northwestern Tanzania, South Africa-based gold producer AngloGold Ashanti, owning the Geita open mine located in Geita Region, Shanta Gold operating the Luika Mine, Canaco Resources and Lake Victoria Mining Company, Tanzania Royalty operating the Buckreef Gold Mine and Stamico, operating the Tulawaka Mine. The Golden Pride mine, which was being operated by the Australia-based Resolute Mining, was closed down in 2014.

Tanzania opened its mining sector to large-scale foreign investors in 1998, following the enactment of the Mining Act, 1997, after it became the third largest gold mining country in Africa, but was later overtaken by Mali and, in 2015, by Sudan, to become the fifth largest.

In 2010, the country enacted a new law, the Mining Act 2010, which sought to enable the government to get more revenue from the sector. The Act increased royalty of minerals to 4 per cent (gold and other metallic minerals), 5 per cent (uranium, gemstones and diamond).

The Mining Act, 2010 also limited licences to mine gemstones to Tanzanians only regardless of the size of the operation “except where the minister determines that the development is most likely to require specialised skills, technology or a high level of investment in which case the license may be granted to an applicant so long as the non-Tanzanian participation element is no more than 50 per cent,” according to section 8(4).

The Act also gives the minister the powers to prescribe a standard model form the mining development agreement for all projects exceeding $100 million. The Mining Act, 1998 had not given the minister responsible for mining powers to prescribe the MDA. But the Act also changed the way royalties are calculated from the net value to gross value.

SOURCE: http://allafrica.com/stories/201704270524.html

Kenya: Mining firm puts Kwale work on hold

By Otiato Guguyu | Friday, Apr 14th 2017 at 23:30

Mining firm Base Titanium has put off mineral exploration plans in Kwale County over what it says are rising political temperatures in the country.

The firm said it will have to wait until next year to explore potential finds in consultation with winners of the upcoming polls and local communities.

“Political tensions made drilling in the North Eastern sector untenable. Our intentions are to engage the communities and ask for consent after the elections,” Base Titanium External Affairs Manager Simon Wall said in Nairobi on Wednesday.

Awaiting nod

ALSO READ: Kakamega’s Rosterman gold mining banned

During the first quarter of this year, the firm managed to drill 773 holes prospecting for further mineral finds beyond its areas of operations. The firm has reported finds of potential deposits in Eastern sections, South Western sections and Magisini area.

Base Titanium has already applied for a special prospecting licence towards the Tanzanian border and has been given the green light by the Mining Ministry.

The company is, however, awaiting the nod from the Mineral Rights Board, which was only recently constituted.

“Regulations on licensing and permitting are still in Parliament and we are hoping they will be through by May this year so we can oprationalise the licence,” said Mr Wall.

Base Titanium has also received five prospecting licences from Tanzanian authorities and plans drilling across all five blocks by September this year.

During the first quarter, the company’s production fell from three million tonnes to 2.6 million tonnes.

SOURCE: https://www.standardmedia.co.ke/business/article/2001236365/mining-firm-puts-kwale-work-on-hold

Tanzania’s Magufuli Walking the Talk on Mineral Sand Exports

The president who is nicknamed “The Bulldozer” has been fulfilling his presidential campaign promises, the latest issue he has tackled is his promise to stop the exporting of mineral sands for processing outside the country.

President John Magufuli yesterday directed a new team sworn-in to probe mineral sands to conduct thorough investigations to establish the amount of containers that have been exported for the last 19 years.

In the same vein, the head of state has tasked the squad to establish types of minerals, their monetary value and amount contained in such containers, a statement issued in Dar es Salaam by the Directorate of Presidential Communications stated.

Dr Magufuli issued the instruction after swearing-in the second special team he named on Monday to examine the contents of mineral sand in containers held in various parts of the country.

This time around, the team comprises economists and lawyers while the first was made up of geologists, chemists and scientists. The team members are Professor Nehemiah Eliachim Osoro, Professor Longinus Kyaruzi Rutasitara, Dr Oswald Joseph Mashindano and Mr Gabriel Pascal Malata.

Others are Mr Casmir Sumba Kyuki, Ms Butamo Kasuka Philip, Mr Usaje Benard Usubisye and Andrew Wilson Massawe. “Get on with it…we need to know how many containers have been exported since 1998…types of minerals…how many tonnes of gold, coppers and silver.

“How many containers are being shipped per month? Your study should answer these questions,” he directed, adding that the team must also find out how much the country had earned…thus far…from the exports.

He also tasked the team to examine the legal aspects and see what law says about the exportation. The president noted that it was high time the country benefited from her natural resources, adding that he was not ready seeing Tanzanian resources benefit foreigners while locals were suffering.

Meanwhile, Dr Magufuli yesterday received the 2015/2016 Performance Report from the Prevention and Combatting of Corruption Bureau (PCCB). The report presented by the anti-graft body’s Director General, Mr Valentino Mlowola, among others, dwells on ‘success stories’ recorded in the anti-corruption campaign as well as the challenges facing the force.

Mr Mlowola noted that there had been positive response from the citizens in reporting corruption claims, consequently pushing up number of graft cases filed in various courts of law.

The DG said the anti-graft body has been able to save 53bn/- since President Magufuli came into power up from 7bn/- recorded in the last administration. He said they successfully managed to control revenue losses through tax evasion and project funds mismanagement.

Dr Magufuli hailed PCCB for ‘work well done’ and pledged that the government would lend its full support to ensure the war against graft succeeded, urging that all “those proved to have been involved in corruption are dealt with seriously.”

“We can’t make it without containing corruption. I thus ask Tanzanians and all other relevant authorities to cooperate in fighting corruption,” he said, showing dissatisfaction with legal actions against the culprits.

Tanzania: Mineral Sands Probe – After the Science, Now the Real Food

DAILY NEWS, 12 APRIL 2017

President John Magufuli yesterday directed a new team sworn-in to probe mineral sands to conduct thorough investigations to establish the amount of containers that have been… Read more »

Tanzania: How Magufuli Copper Concentrate Prophesy Came to Pass

EAST AFRICAN, 11 APRIL 2017

President John Magufuli yesterday named a second team of experts to join an ongoing investigation into the mineral content in hundreds of tonnes of copper concentrate withheld in… Read more »

Tanzania: Magufuli’s Prophesy Comes to Pass

CITIZEN, 11 APRIL 2017

President John Magufuli yesterday named a second team of experts to join an ongoing investigation into the mineral content in hundreds of tonnes of copper concentrate held in… Read more »

Tanzania: Magufuli Appoints Another Committee for Mineral Sand Saga

DAILY NEWS, 10 APRIL 2017

To reinforce his order to investigate mineral sands saga in Tanzania, President John Pombe Magufuli has formed another committee with the same aim, now comprising renowned… Read more »

Tanzania: Key Challenges, New Directions in Tanzania’s Mining Sector

CITIZEN, 9 APRIL 2017

The conundrum facing Tanzania’s mining sector has its roots in the country’s colonial history. Today, 56 years after independence, integration of the sector into the national… Read more »

Tanzania: Magufuli Leads Off Mineral Sand Team

DAILY NEWS, 2 APRIL 2017

President John Magufuli has ordered security machineries in the country to make sure that nobody blocks the newly formed committee of experts from conducting its… Read more »

Tanzania: Mining Firms Oppose Ban On Mineral Exports

EAST AFRICAN, 22 MARCH 2017

Mining companies are facing vast capital outlays and potential losses as a result of a ban on exports of unprocessed minerals by Tanzania. Read more »

Tanzania: Sand Containers Retained At Dar Port

DAILY NEWS, 24 MARCH 2017

TWENTY containers of mineral sand from the Lake Zonebased mines remain stranded at the Dar es Salaam Port, pending thorough investigations. Read more »

Tanzania: Ban On Mineral Sands Export to Stay

CITIZEN, 3 MARCH 2017

President John Magufuli has reiterated the ban on the exportation of mineral sands, and has directed the minister of Energy and Minerals, Prof Sospeter Muhongo, to ensure the ban… Read more »

SOURCE: http://allafrica.com/view/group/main/main/id/00050951.html

Clifford Chance: global businesses will pay for human rights abuses

By Eduardo Reyes
31 March 2017

Large companies will come under increased pressure during 2017 to provide effective ‘remedies’ to victims of business-related human rights abuses, according to a report by magic circle law firm Clifford Chance.

The report, published this week, is based on an analysis of developing law, action by UN bodies, and legislative changes planned in key jurisdictions. It was co-authored with the Global Business Initiative on Human Rights.

Referencing the UN Guiding Principles on Business and Human Rights (UNGP), the report’s authors noted widespread adoption of ‘policies and due diligence processes aimed at respecting human rights’. But, they added: ‘Less progress has been made to implement the UNGP’s framework for victims of business-related human rights abuse. This so-called “forgotten pillar” will receive specific attention in 2017.’

Professor John Ruggie, architect of the principles, has described the ‘patchwork of mechanisms’ as ‘incomplete and flawed’. Measures to correct this are now accelerating, the report concluded.

Last year the UN’s Office of the High Commissioner for Human Rights issued guidelines for states detailing urgent areas for attention for member states. Guidelines demanded ‘domestic law tests for corporate legal liability’, ‘criminal sanctions’ and action on ‘financial obstacles for legal claims’.

An intergovernmental working group, established in October 2016, has made progress in developing ‘an international legally binding instrument to regulate, in international human right law, the activities of transnational corporations and other business enterprises’. 47 UN member states support its position.

In a separate development, eight EU member states are backing calls for legislative action on business and human rights to be taken by the European Commission.

Jurisprudence referenced as cross-border business liability for human rights abuses should receive close attention, the report said. Notable cases included Canadian cases Araya v Nevsun and Choc and others v Hudbay, and England and Wales case Lungowe v Vedanta.

SOURCE: https://www.lawgazette.co.uk/news/clifford-chance-global-businesses-will-pay-for-human-rights-abuses/5060516.article