MINING LAW – LEGAL ALERTS ON RECENT CHANGES AFFECTING NON-INDIGENOUS TANZANIAN COMPANIES IN PROVISION OF GOODS AND SERVICES IN MINING SECTOR.
In its recent announcement, the Mining Commission under the Ministry of Minerals, has issued amendments with regards to the provision of goods and services by a Non-Indigenous Tanzanian Company in the Mining Industry Value Chain in Tanzania.
KEY TAKE-AWAYS TO BE CONSIDERED IN THIS ANNOUNCEMENT.
- All Non-Indigenous Tanzanian companies that intend to provide goods and services to a contractor, a subcontractor, Licensee, the Corporation or allied entity within Tanzania are required to incorporate a Joint Venture Company with an Indigenous Company and afford that indigenous Tanzanian Company an equity participation of at least Twenty (20%) Percent in accordance with the Regulation 8 (6) of the Mining (Local Content) Regulations, 2018 as amended, 2019.
- Non-Indigenous Tanzania Companies shall not be allowed to provide goods or services to a contractor, a Subcontractor, Licensee, the Corporation or Allied Entity without the formation of a joint venture company. The formed Joint Venture Company is required to ensure full compliance with all relevant provisions the Mining Act CAP 213 and the Mining (Local Content) Regulations, 2018 as amended, 2019 which includes having an approved Local Content Plan and submission of Performance Reports.
Provision of goods or service without fulfilling the above-mentioned requirements is an offence punishable under Regulation 49 of the Mining (Local Content) Regulations, 2018 as amended, 2019.
