Richland accepts KNL terms, page-29

From the Mineral Policy document of 2009 (not the Act) https://mem.go.tz/wp-content/uploads/2014/02/0014_11032013_Mineral_Policy_of_Tanzania_2009.pdf

Issue: Strategic participation of the Government in the mineral sector and creation of conducive environment to increase participation of Tanzanians in medium and large scale mines.

Increase Participation of Government and Tanzanians in Mining Activities

Experience in some countries has shown that governments can maximize the benefits from the mineral sector through government participation in mineral projects. Government participation is an alternative fiscal instrument for capturing a share of fiscal benefits generated from mining. Although the same amount of fiscal benefit can be captured by other forms of fiscal instruments such as tax on profits, some type of minority participation may be considered by foreign investors as offering further assurance against political risk. The Government also recognises that dividend receipts from its participation are not assured, and there is a risk of financial loss associated with its participation in mining projects which turn to be unprofitable. Moreover, significant costs may arise in future in respect of Government’s shares for which it may not be able to fund.

Participation of citizens in large scale mines will also contribute towards maximizing the benefits retained in the country. In this respect, Tanzanians will need access to sufficient capital and be able to acquire shares in mining companies locally and abroad. In addition, the Government will facilitate foreign mining companies to register in the local stock exchange to enable public participation in medium and large scale mines.

Objective: To participate strategically in viable mining projects and establish an enabling environment for Tanzanians to participate in ownership of medium and large scale mines.

Policy Statement

(i) The Government will empower its institutions to participate strategically as a developer or jointly with private sector in mining projects;


(ii) The Government will take necessary measures to enable Tanzanians to participate in medium and large scale mining;


(iii) The Government will collaborate with stakeholders to eliminate obstacles hindering mining companies from registering in the Dar es Salaam Stock Exchange; and Tanzanians from buying shares in mining companies registered abroad; and


(iv) The Government will take steps to allow Tanzanians to enlist their mineral rights in foreign stock exchange markets to access capital.