By Fumbuka Ng'wanakilala
In Summary
- Major foreign-owned mining companies in Tanzania that will be affected by the requirement to list on the Dar es Salaam Stock Exchange include Acacia Mining Plc, AngloGold Ashanti and Petra Diamonds.
- The government issued regulations last year requiring holders of special mining licences to sell a 30 per cent stake in their companies via an initial public offering within two years.
- Tanzania is Africa's fourth-biggest gold producer and also has vast deposits of coal, uranium and precious gemstones.
Tanzanian President John Magufuli said his government will
enforce a new rule requiring mining firms to list on its bourse by
August as part of measures aimed at increasing transparency and
spreading wealth from the country's natural resources.
Major foreign-owned mining companies in Tanzania that will be
affected by the requirement to list on the Dar es Salaam Stock Exchange
include Acacia Mining Plc, AngloGold Ashanti and Petra Diamonds.
"By listing these companies on the stock exchange, we will be
able to monitor how much (revenue) they actually get," President
Magufuli said in a television programme aired by local stations late on
Tuesday.
The television programme produced by the president's office
featured comments made by Mr Magufuli during talks with local business
leaders on May 6.
The government issued regulations last year requiring holders of
special mining licences to sell a 30 per cent stake in their companies
via an initial public offering within two years.
The mining ministry amended the rules in February and set a new listing deadline to August 23.
Tanzania is Africa's fourth-biggest gold producer and also has vast deposits of coal, uranium and precious gemstones.
President Magufuli said he hoped IPOs would bring more
transparency and offer the public a share of the mining industry's
profits.
Since coming into office in November 2015, Mr Magufuli has
launched a crackdown on tax evasion targeting large companies,
particularly mining and telecoms firms.
Major mining companies confirmed they were in talks with the Tanzanian government on the new mandatory listing rule.
"As investors in any country, we value policy and regulatory
stability and certainty. We value the ability to have a constructive
dialogue with the authorities in Tanzania with respect to the listing
regulations," AngloGold Ashanti spokesman Chris Nthite, told Reuters.
AngloGold Ashanti owns the Geita gold mine in northwest Tanzania.
London-listed Petra Diamonds, which holds a 75 per cent stake in
the Williamson diamond mine in Tanzania, with the government holding
the rest, said it was also in discussions with authorities on the
listing rule.
Acacia had no comment when contacted by Reuters, but said last
month while releasing first-quarter earnings its three gold mines in
Tanzania would be affected by the listing requirement.
The planned mandatory listing of mining companies comes after
implementation of separate regulations requiring telecoms firms list on
the local stock exchange.
-REUTERS
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