IM 2017 August 17 | Page 5

THE LEADER VO LU M E 1 2 • N U M B E R 8 Countries can kill their mining industries with greed Founder and Publisher John Chadwick B.Sc. Min Eng Email: [email protected] Editor Paul Moore B.Sc (Hons), M.Sc. Email: [email protected] Lusaka, Kitwe, Dar es Salaam, Johannesburg, Pretoria with the dispute resolution t beggars belief that so many countries can still I processes agreed by the jeopardise the strength (financial, technical and Government of Tanzania in social) of their mining industries by government their Mineral Development greed. After so many years of the global mining Agreements with BGML and industry’s cyclical ups and downs and so many PML. Editorial Board Professor Malcolm Scoble Robert E. Hallbauer Chair in Mining Engineering., University of BC, Vancouver examples of the wrong way to do it, governments still Peter Knights Professor and Head of Division of Mining At around the same time, see a strong mining industry as a way to increase AngloGold Ashanti began arbitration proceedings. The revenues without considering how that same mining world’s third-biggest gold producer said that in light of industry will survive the hard times; without giving full the changes to the mining legislation it had “no consideration to all the social benefits that mining choice” but to take such precautionary step to Stephen Stone West One Management Perth, Western Australia industry might be providing to its population; and safeguard its agreements with Tanzania. Dr. Andrew M. Robertson President, Robertson GeoConsultants Vancouver, Canada. investors that may be done to the country. For example, Zambia’s copper output will climb by Mine Development Agreement (MDA) in relation to the Ed McCord Project Consultant Caterpillar Global Mining, USA about 4% to a record this year. But mine operators have development and operation of the Geita gold mine. “The been in a row with government over power prices for MDA was instrumental in the decision to make the some years. Production will increase to about 800,000 significant investment in the development of Geita at a t, said Nathan Chishimba, President of the Chamber of time of significantly lower gold prices and when Tanzania Mines of Zambia. That would be higher than the was an untested jurisdiction for new mine development. Jason Nitz Fleet Management & Dispatch Superintendent Newmont Mining Corporation, USA Dr Terry Mudder Managing Director, TIMES Ltd, USA Simon Tarbutt Consultant, Santiago, Chile Dr. Mike Daniel Comminution Process Consultant CMD Consulting Pty Ltd Editorial Enquiries: Tel: [phone] Fax [phone] without considering the reputational damage with AngloGold Ashanti´s indirect subsidiaries, Samax Resources Ltd and Geita Gold Mining Ltd are parties to a 770,600 t mined last year, and exceed a previous record “Since starting production almost two decades ago, of about 790,000 t in 2013. The forecast is less Geita has been a source of significant benefit to all optimistic than a projection by Christopher Yaluma, the stakeholders, yielding more than $1 billion in Mining Minister, who sees output jumping to 850,000 monetary benefit to the GoT. Last year alone, a total of t, Bloomberg reported in June. $130 million in taxes was paid (borne and taxes Negotiations over a proposed power-tariff increase collected on behalf of Government) by Geita.” for the industry that accounts for more than half of And now South Africa’s mining future hangs in the Zambia’s electricity consumption are “progressing balance. On July 14: The Chamber of Mines of South Advertising Sales: Phil Playle Email: [email protected] [phone] well,” Chishimba said in an interview in Kitwe, Africa advised that “the Minister of Mineral Resources Copperbelt province. Most mines in the country rejected has given a written undertaking that the Minister and an increase the government imposed in 2014, and again the Department of Mineral Resources (DMR), will not Advertising Production Lynne Lane Email: [email protected] at the start of 2016, and talks have been ongoing. implement or apply the provisions of the 2017 Design & Production Trevor Sheldon Email: [email protected] Government wants to recoup costs, while ensuring Reviewed Mining Charter in any way, pending copper producers are profitable, Yaluma said. “We are judgment in the urgent interdict application brought not trying to choke anybody’s throat,” he said. by the Chamber of Mines.” Tanzanian President John Magufuli said on July 10 The Chamber is seeking an urgent interdict to Circulation Enquiries [email protected] he has signed into law new mining bills which require prevent the implementation of the DMR’s Reviewed the government to own at least a 16% stake in mining Charter, published in June 2017. Website: www.im-mining.com projects. The laws, which also increase royalties tax on Chamber of Mines CEO, Roger Baxter explained that gold and other minerals, were passed by parliament the Chamber’s primary objective is to ensure that the despite opposition from the mining industry body. DMR’s Charter does not come into effect. He stressed Annual Subscription Enquiries: Emma Smith Email: [email protected] A few days later, Russia’s Rosatom suspended its that “it was imperative that meaningful and lasting Annual Subscription UK and Europe £160, €230 Rest of the world US$270 $+1 billion Mkuju River uranium project in Tanzania for transformation be undertaken in a way that it ensures at least three years due to the depressed uranium the sustainability and growth of the industry.” There International Mining (ISSN No: 1747-146X) is published monthly by Team Publishing Ltd, GBR and is distributed in the USA by Asendia USA, 17B South Middlesex Avenue, Monroe NJ 08831 and additional mailing offices. Periodicals postage paid at New Brunswick NJ. POSTMASTER: send address changes to International Mining, 17B South Middlesex Avenue, Monroe NJ 08831 market. However, that was not the only reason; the has been a tremendous outcry from industry against other was the major overhaul of Tanzania’s mining the 2017 Reviewed Mining Charter. laws. The aim is to provide the state with a greater It increased the minimum threshold for black share of revenue from the country’s natural resources, ownership of mining companies to 30% from 26%. It but it has imposed fresh difficulties for mining also established that firms must pay 1% of turnover to companies operating in Tanzania. their black empowerment partners. Had this been in Printed by The Manson Group, St Albans © Team Publishing Ltd 2017 Earlier in July, Acacia Mining served Notices of effect last year it would have consumed 95% of the Arbitration in Tanzania on behalf of Bulyanhulu Gold ZAR6 billion (about $460 million at today's rates) paid ISSN 1747 -146X Mine Ltd (BGML), the owner of the Bulyanhulu mine, in total dividends by the industry last year, the and Pangea Minerals Ltd (PML), the owner of the Chamber said. IM uses, as preference, SI units throughout, so, for example, all tonnes are metric unless otherwise stated. All dollars are US unless otherwise stated Buzwagi mine. These refer the current disputes John Chadwick between the Government of Tanzania (GoT) and each Founder of BGML and PML to arbitration. This is in accordance [email protected] AUGUST 2017 | International Mining 3