In 2015 John Magufuli become President of Tanzania. A stern and arguably aristocratic leader. He heavily opposed the mining industry and his agenda was to bring the profits home, fair enough. His technique was questionable.
By 2017 Magufuli had delivered revised mining laws and regulations increasing gold royalties from 4 percent to 6 percent. Further, he introduced 16 percent government ownership of mining companies’ stock without compensation, with the opportunity to purchase a further 34 percent ownership. Exportation of concentrates and unprocessed minerals was banned requiring that value addition processing be done in Tanzania. Ask yourself, if you had the money for funding a company, would you fund a company in Tanzania under these conditions?…
In 2021 John Magufuli died, allegedly it was covid.
Samia Suluhu Hassan is Tanzania’s new President. Although some of the conditions were relaxed in 2019, before her time, she is further pushing the incentives for foreign investors.
I’m expecting to see Tanzanias government take a slice of Bunyu if they help with finance. Unlike other countries which tend to give grants, create projects and collect the taxes and royalties.
could be wrong about that.
Tanzania is going through a political evolution. Good to see the support.
For whatever reason, PC seems reluctant to announce anything on the progress of these negotiations, I can think of a few reasons why.
VRC Price at posting:
0.4¢ Sentiment: Buy Disclosure: Held
