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UPDATE 1-Tanzania's Magufuli pushes for listing of mining firms
May 10, 2017 / 11:45 AM / 4 months ago

UPDATE 1-Tanzania's Magufuli pushes for listing of mining firms

(Adds comment by Acacia Mining)

By Fumbuka Ng‘wanakilala

DAR ES SALAAM, May 10 (Reuters) - Tanzania will enforce a new rule requiring mining companies to list on its bourse by August, President John Magufuli said, 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, 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 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 of 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 the 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 targeted large companies, particularly mining and telecoms businesses, in a crackdown on tax evasion.

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 said.

AngloGold Ashanti owns the Geita gold mine in northwest Tanzania.

London-listed Petra Diamonds, which holds a 75 percent stake in the Williamson diamond mine in Tanzania, with the government holding the rest, also said it was in discussions with authorities on the listing rule.

Acacia said it will be engaging with the authorities. Tanzania’s biggest gold miner said last month that its three gold mines in the country 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 David Evans and David Goodman)

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