Tanzanian President John Magufuli on Monday signed a bill which allows at least 16% stake of mining project to go to the government.
A law regarding the increment of tax royalties on gold and other minerals from 4% to 6% was also passed last week despite the objection to this law by the mining industry body.
The bill gives the government the right to tear up and renegotiate contracts for natural resources like gas or minerals and remove the right to international arbitration.
“We must benefit from our God-given minerals and that is why we must safeguard our natural resource wealth to ensure we do not end up with empty mining pits,” Magufuli told a rally in his home village in Chato district, northwestern Tanzania.
Magufuli said on Monday that license will not be given to any new mining industry until the country “puts things in order” to this effect. He also said that all existing mining license with foreign investors will be reviewed.