A lot of tension gave arisen in East African nation Tanzania, after a recent statement by the country’s Premier to bring to an end the export of natural resource concentrate. With the command, that seems to have taken a dynamite move in the extraction and energy sector, Australian mining firms have been constrained to seek about their futuristic operations in the country.
Tanzania’s President John Pombe Magufuli had imposed a ban on the export of gold and copper concentrate that prompted a number of questions in the industry. The bold, unwavering move brought operations to a stand-by for an era as the shocking impromptu news made the headlines in the mining arena. It affected mainly the foreign, mining firms in the state.
Tanzania has imposed a ban on the export of mineral concentrates and ores for metallic minerals, including gold, copper, nickel and silver.
Perth-based Tanga Resources director John Stockley flew to Tanzania for talks with local ministers after the country slapped a ban on the export of mineral concentrates and ores for metallic minerals, including gold, copper, nickel and silver.
“If the Tanzanians wish to encourage foreign investment, they’re not helping by making these sorts of announcements,” Mr Stockley said.
Tanga has what it describes as a high-grade gold prospect in Tanzania and Mr Stockley said in six years of exploration in the country, the company had never had trouble.
But despite some initial confusion as to the scope of the ban, first announced by Tanzania’s Ministry of Energy and Minerals on March 2, Mr Stockley said his local staff appeared confident the export of gold bars would not be stopped and so was not too upset.
The Department of Foreign Affairs and Trade said Australia was “closely monitoring” the new business policies and regulations in Tanzania for any impact these changes may have on Australian investment interests – but the government has not yet directly made diplomatic representations in response to the ban.
Several Australian firms have interests in graphite, mineral sands and rare earths in Tanzania, including Magnis Resources, Strandline Resources and Peak Resources, but all have been assured they are unaffected.
Tanzania was seen as a darling of Africa’s mining boom a decade ago but views are mixed as to the future, whether the ban is just part of the usual risk of doing business in poorer countries or a sign of further problems to come.