Toronto-based Tanzanian Royalty Exploration Corporation
(CN:TNX) has praised the country’s president John Magufuli, saying his demands
on the resources sector were “clearly a call for fair and equal treatment, not
nationalisation”.
The country recently passed new laws designed to increase
government revenue and give it the power to dissolve contracts and block
international arbitration.
In addition to the new legislation, the government has
blocked exports of gold and copper concentrate, handed Acacia Mining (LN:ACA) a
US$190 billion tax bill that the miner disputes, and last month took more than
70,000 carats worth of diamonds from the Williamson mine it jointly owns with
Petra Diamonds (LN:PDL).
However Tanzanian Royalty Exploration, which will share
45% of the asset and earnings of the Buckreef gold project with Tanzania, said
the enterprise which produced the natural resources should have a fair share of
the rewards.
“As a businessman operating in Tanzania for more than 20
years, it is my opinion that operating in good faith is as necessary in
Tanzania as it is everywhere else,” executive chairman James Sinclair said.
“President Magufuli is a man for this time, country and
continent.”
He said the company was not affected by the new laws and
referred to recent comments by a government spokesperson, who said there was no
truth in reports claiming the country was moving to take over ownership of
mines.
The company started negotiations in July to finance a
gravity/CIL plant for the Buckreef open pit project which has a reserve just
over 1 million ounces.
Source: Mining Journal