"Tanzania passes laws on renegotiation of mining, gas contracts"

Tanzania's parliament passed two laws on Monday allowing the government to force mining and energy companies to renegotiate their contracts, despite pleas from the mining association for more time. Businesses have complained that they feel President John Magufuli is unfairly squeezing them through a strict interpretation of tax laws, increased fines and demands they rapidly list on the local stock markets.

Magufuli has said the reforms will increase transparency and revenues.There are three bills in total covering natural resources contracts, sovereignty and amendments to existing laws and they could allow the government to renegotiate or dissolve contracts. "Parliament has passed two (laws) legislation - the Natural Wealth and Resources (Permanent Sovereignty) and the Natural Wealth and Resources Contracts (Review and Re-negotiation of Unconscionable Terms) bills," the state-run Tanzania Information Services said in a statement...

he bills follow months of wrangling between mining companies and Magufuli's government. The government has repeatedly targeted Acacia Mining, majority-owned by Barrick Gold. Acacia has most of its productive assets in Tanzania and its share price has nearly halved since March.