| DAR ES SALAAM
DAR ES SALAAM May 10 Tanzania's 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,"
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 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 percent 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 Aug. 23.
Tanzania is Africa's fourth-biggest gold producer and also
has vast deposits of coal, uranium and precious gemstones.
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, 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
London-listed Petra Diamonds, which holds a 75 percent 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.
(Reporting by Fumbuka Ng'wanakilala; Editing by George Obulutsa
and David Evans)