Mineral funds under govt hat. . . All payments from negotiations to remain classified

By SYLVESTER DOMASA in Dodoma 

THE government has revealed that all upfront payments resulting from ongoing negotiations with multinational companies investing in the mineral sector will remain the State’s topmost classified information.
President John Magufuli’s administration is currently pushing for major reforms in the country’s extractive
industry, targeting to retrieve decades- long denied revenues.
A recent move has seen the State ending a tax dispute with Acacia, after the mining firm agreed to pay some 300 million US dollars (about 700bil/) upfront as a ‘gesture of good faith.’
In addition, Tanzanite One Mining Company Limited also agreed to compensate the State with regard to anomalies which were committed by the investor in the past. Both payments were purported to be made in instalments.
But while debating the Ministry of Minerals Budget estimates for the Financial Year 2018/19, the government revealed that, “No single cent to be paid will be made public.”
All responsible authorities, including the Controller and Auditor General (CAG) and the Treasury will be privy to all the transactions, Prof Palamagamba Kabudi (pictured), Minister for Constitution and Legal Affairs who also chairs the State-investors negotiation team told the National Assembly yesterday.
“We have learnt a lesson. We will never reveal the transaction,” he insisted, noting that Tanzanite One Mining Company that agreed to compensate the government as well as paying uncollected taxes has released its first instalment.
Like he said, no single amount was made public. The government said its earlier announcement had sent wrong signals that saw unprincipled people turning around, claiming unsettled debts from the 1970s.
This is why we want the public to know and we want it to remain that way, the outspoken Minister and professor in law noted.
Details from the government said after discussions with Acacia and Tanzanite One Mining Company, a similar approach will be applied to all mineral firms, with the next round planned to beAnglo Ashanti owner of Geita Gold Mine in Geita and the Williamson Diamond Mine that operates in northeast of Shinyanga in Tanzania.
Prof Kabudi said Tanzania has been a victim of its own mineral laws which were enacted since the colonial era.
He also told parliamentarians that Tanzania was being exploited by multinational companies since the laws were based on exploitation rather than investment.
“We have put on ice all the Mining Development Agreements (MDAs). We’re struggling to freeze the existing ones and we don’t expect to issue such form of documents.”
The government said, instead, it has adopted special mining licences that will be issued to all new applicants interested in mineral exploration and extraction.
According to the Minister, the approach is the best option for African countries. He noted that Zambia has so far adopted the modal, calling upon Democratic Republic of Congo (DRC) to adopt the same approach.
On the other hand, the Minister said that the discussions with Barrick are ongoing and expected to be completed at the end of this month. “The talks will soon be finalised.
This means we will be able to receive our monies,” he said, reminding that the country inherited contracts which were not profitable to its people.