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| :: Policy and Legislation |
The comprehensive and sector wide reforms, which Government started implementing in 1980s also called for the review of the mining sector. In 1993, the Government started formulating a comprehensive Mineral Sector Policy Strategy Framework (MSPF) as well as action plans to implement a series of reforms in legal, regulatory and fiscal regimes and institutional changes. The goal of the Mineral Sector Policy Framework oriented towards the private sector development of the mineral sector with the government providing the necessary enabling environment for private investment.
The major policy, fiscal and regulatory landmarks that have had significant impact in the development of the mining industry in Tanzania are as follows:
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In October 1997, the Mineral Sector Policy was approved by government. as Government’s statement of intention to guide the investment and operations of the mining sector in Tanzania. The policy vision is to have a strong, vibrant and well-organized private sector led, large and small-scale mining industry conducted in a safe and environmentally sound manner. The policy amongst others, aims at revamping the mining industry by instituting the following policy objectives and challenges: |
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• Stimulation of private sector-led exploration and mining development |
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• Raising the contribution of the mineral sector in the national economy, increasing foreign exchange earnings and government’s revenue and ensuring environmental protection; |
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• Regularizing and improving artisanal mining;
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Enactment of the Financial Laws (Miscellaneous Amendments) Act 1997 providing for improved fiscal packages for the mining sector.
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In April 1998, the Parliament passed a new Mining Act 1998 which to a large extent addressed the main issues of concern to investor community. The key features of the Act include; streamlining small scale and large scale mining licensing procedures and ensuring transparency and fairness by conferring of mineral rights on the basis of first come first served. It has simplified and consolidated mining statutes previously under different legislations or subsidiary statutes, it ensures security of tenure and has introduced a retention licence in case of adverse market conditions affecting a mineral under exploitation, it enhanced clarity and transparency. Unlike the old Act, it addressed comprehensively mine safety, health and environmental management issues. It guarantees rights to trade in minerals and mineral rights. It ensures that contractual obligations are protected and provides for settlement of disputes through courts or international arbitration. It has eliminated most of the Ministerial discretionary powers and has introduced a Mining Advisory Committee to advise the Minister by instituting the necessary checks and balances.
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Along with the Mining Act 1998 came the Mining Regulations containing operational guidelines, environmental and safety standards to ensure that mining operations are carried out in accordance with internationally recognized standards.
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In February 1999, the Value Added Tax Act was amended to give relief to registered exploration mining and service providers from paying Value Added Tax in recognition of the high risks associated with mining ventures. | |
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