Saturday 1 July 2017

Tanzania Mining Shake Up 'Put in Perspective'

Minister for Constitution and Legal Affairs, Prof Palamagamba Kabudi yesterday set the ball rolling by giving a tough presentation on three bills that are to be discussed in the House starting Monday.
The bills are expected to put the mining sector’s house in order after the dust from the recent revelation, by two special committees formed by President John Magufuli, of massive thievery and deception perpetrated by mining firms as a result of faulty mining contracts and laws, is still to settle.

Prof Kabudi’s presentation sets a platform for the MPs to go through the bills that were made available for discussion by committees and all legislators since Thursday. He told legislators that whatever is set to be discussed need to be done in patriotism and safeguarding national interest and ‘wananchi’s’ welfare at large.
“We are all here to protect this country’s natural resources and make sure the national cake is shared by all. Natural resources belong to all Tanzanians and we have the responsibility to protect them, they belong to us and not anybody else,” said Prof Kabudi.
The Minister said the Written Law (miscellaneous Amendments) Act, 2017 propose amendments in six laws with the aim to strengthen the control, responsibility and expand revenue collection in the mining and oil sectors.
He said the amendments aim at bringing the ratio between the laws that are being amended and the current laws in use. The changes also aim at expanding revenue collection in the mining and insurance sectors.
According to Prof Kabudi, some of the changes in the documents include omitting some of the sections and legal words in the current documents and rewrite them.
The laws that are lined up for amendment include the Mining Act, Cap.123, the Petroleum Act, Cap.392, the Income Tax Act, Cap 332, the Value Added Tax, Cap 148 and the Administration Act, Cap 438.
Prof Kabudi who was analysing the documents along with his team of experts told MPs that the proposed amendments aim at enabling ‘wananchi’ to own natural resources such as minerals, oil and gas.
He said the public will own the said natural resources through the President of the United Republic Tanzania. He said in the current law investors own natural resources. He said the bill also recognises the government lien on mineral concentrates.
Also section 100 of the bill proposes that the government will give directives on where to preserve mineral concentrates within the mining sites. The section also proposes that mineral concentrates will not be exported instead it will be sold to whoever will be ready to smelt them and will be subjected to tax.
All mining areas will be under government watch. Section 5A allows the government to provide security in all mining sites, enable it to inspect mining sites, to monitor and keep records of obtained minerals from various mining sites in the country.
According to Prof Kabudi, the bills contain many amendments that altogether aim at protecting the country’s natural resources and make sure they benefit all people. He said the bills have been prepared in accordance with the principles, guidelines and requirement of the constitution of the United Republic of Tanzania of 1977.
He added that the bills also have been prepared to meet requirements and are in line with international laws. He asked MPs to discuss the bills and allow his ministry to read them for the second and third time in the House and thus pass them to become laws.
"Whatever we are doing here is for this country, these minerals belong to us and the coming generation. We have the responsibility to protect natural resources for the coming generation,” said Prof Kabudi.
On the second bill ‘the Natural Wealth and Contracts (Review and Renegotiation of Unconscionable terms) Act, 2017, Prof Kabudi said the bill proposes all contracts related to the natural re sources to be displayed before the public so that ‘wananchi’ can read them and suggest for any changes.
He said the bill aims at fulfilling sections 8,9 and 27 of the constitution of the United Republic of Tanzania, 1977 as amended in 1985. He said the bill suggests that the Parliament must be able to get copies of all contracts on natural resources to discuss and advise the government on various matters for the national interest.
Article source Daily News TZ

Putting it into perspective


Legislation & policy: mineral ownership
Mineral ownership in the UK
In the UK ‘minerals’ are defined in Town and Country Planning legislation as:
‘all substances in or under land of a kind ordinarily worked for removal by underground or surface working, except that it does not include peat cut for purposes other than for sale.’
With the exception of oil, gas, coal, gold and silver, the state does not own mineral rights in the UK. Generally minerals are held in private ownership, and information on mineral rights, where available, is held by the Land Registry together with details of land surface ownership.
Oil and gas
The UK Continental Shelf (UKCS) comprises those areas of the seabed and beneath the seabed, beyond territorial waters (12 mile limit), over which the UK exercises sovereign rights of exploration and exploitation of mineral resources (excluding hydrocarbons).
Ownership of oil and gas within the land area of Great Britain was vested in the Crown by the Petroleum (Production) Act 1934. The Continental Shelf Act 1964 applied the provisions of the 1934 Act to the UKCS outside territorial waters.
For landward exploration a licence is required, which grants exclusive rights to exploit for and develop oil and gas onshore within Great Britain. The rights granted by landward licences do not include any rights of access, and the licensees must also obtain any consent under current legislation, including planning permissions. The Department for Business, Innovation and Skills grants licences to explore for and exploit all oil and gas resources. Licensees wishing to enter or drill through coal seams for coalbed methane and coal mine gas must also seek the permission of the Coal Authority.
Extracts from: MineralsUK