• 5 mins Citgo President And 5 VPs Arrested On Embezzlement Charges
  • 20 mins Gazprom Speaks Out Against OPEC Production Cut Extension
  • 50 mins Statoil Looks To Lighter Oil To Boost Profitability
  • 2 hours Oil Billionaire Becomes Wind Energy’s Top Influencer
  • 3 hours Transneft Warns Urals Oil Quality Reaching Critical Levels
  • 4 hours Whitefish Energy Suspends Work In Puerto Rico
  • 5 hours U.S. Authorities Arrest Two On Major Energy Corruption Scheme
  • 17 hours Thanksgiving Gas Prices At 3-Year High
  • 21 hours Iraq’s Giant Majnoon Oilfield Attracts Attention Of Supermajors
  • 23 hours South Iraq Oil Exports Close To Record High To Offset Kirkuk Drop
  • 1 day Iraqi Forces Find Mass Graves In Oil Wells Near Kirkuk
  • 1 day Chevron Joint Venture Signs $1.7B Oil, Gas Deal In Nigeria
  • 1 day Iraq Steps In To Offset Falling Venezuela Oil Production
  • 1 day ConocoPhillips Sets Price Ceiling For New Projects
  • 4 days Shell Oil Trading Head Steps Down After 29 Years
  • 4 days Higher Oil Prices Reduce North American Oil Bankruptcies
  • 4 days Statoil To Boost Exploration Drilling Offshore Norway In 2018
  • 4 days $1.6 Billion Canadian-US Hydropower Project Approved
  • 4 days Venezuela Officially In Default
  • 4 days Iran Prepares To Export LNG To Boost Trade Relations
  • 4 days Keystone Pipeline Leaks 5,000 Barrels Into Farmland
  • 5 days Saudi Oil Minister: Markets Will Not Rebalance By March
  • 5 days Obscure Dutch Firm Wins Venezuelan Oil Block As Debt Tensions Mount
  • 5 days Rosneft Announces Completion Of World’s Longest Well
  • 5 days Ecuador Won’t Ask Exemption From OPEC Oil Production Cuts
  • 5 days Norway’s $1 Trillion Wealth Fund Proposes To Ditch Oil Stocks
  • 5 days Ecuador Seeks To Clear Schlumberger Debt By End-November
  • 5 days Santos Admits It Rejected $7.2B Takeover Bid
  • 6 days U.S. Senate Panel Votes To Open Alaskan Refuge To Drilling
  • 6 days Africa’s Richest Woman Fired From Sonangol
  • 6 days Oil And Gas M&A Deal Appetite Highest Since 2013
  • 6 days Russian Hackers Target British Energy Industry
  • 6 days Venezuela Signs $3.15B Debt Restructuring Deal With Russia
  • 6 days DOJ: Protestors Interfering With Pipeline Construction Will Be Prosecuted
  • 6 days Lower Oil Prices Benefit European Refiners
  • 6 days World’s Biggest Private Equity Firm Raises $1 Billion To Invest In Oil
  • 7 days Oil Prices Tank After API Reports Strong Build In Crude Inventories
  • 7 days Iraq Oil Revenue Not Enough For Sustainable Development
  • 7 days Sudan In Talks With Foreign Oil Firms To Boost Crude Production
  • 7 days Shell: Four Oil Platforms Shut In Gulf Of Mexico After Fire
Alt Text

Did These Mining Giants Just Confirm The Next Gold Frontier?

After Ecuador’s President removed a…

Alt Text

Can Mali Maintain Its Gold Mining Status?

Mali could be about to…

Alt Text

Expect Mine Closures In This Key Gold Mining Nation

Major gold mining nation South…

The Government Just Killed The Mining Sector In This Critical Gold Nation

Acacia gold mine

The Philippines government said this week it is trying to repair its damaged mining sector. With officials stating they will review all policies implemented by former environment secretary Regina Lopez — who took a hardline stance against operations around the country.

But as that mining nation swings to the better, another key metals country has gone the other way. With the government implementing a raft of policies that may well decimate the entire sector here.

Tanzania.

As I’ve discussed, the Tanzania government has gone to war with miners in recent months. Accusing companies like Acacia Mining of cheating on export duties — resulting in a complete ban on concentrate exports earlier this year.

And this week, officials took the fight to another level — passing several new laws that will make mining much more challenging in the country.

Here’s what’s happening.

The biggest change is a requirement for state interest in all mining projects. With a new law passed Tuesday requiring miners to give up 16 percent of their shares to the government — at no cost.

And it doesn’t stop there. With the law further stating the government has the right to acquire up to 50 percent of the shares of any mining company.

The law states that such an increase in ownership will be “commensurate with the total tax expenditures incurred by the government in favour of the mining company” — a vague statement that could likely be invoked under a variety of situations.

The government also granted itself power to nullify any mining (and oil and gas) contracts, as it pleases. And stripped local miners of any right to international arbitration. Related: Has U.S. Shale Wrecked Its Own Recovery?

As a final stroke, officials also increased mining royalties — raising rates on precious metals and copper to 6 percent, from a former 4 percent. Uranium royalties will also rise to 6 percent, from 5 percent.

In-country firms like Acacia Mining immediately said they would seek arbitration over the new rules. But unless they can pull a rabbit from the hat, Tanzania’s mining sector is going to be very subdued going forward — with the new fiscal terms unlikely to be palatable for most firms.

Watch for developments on legal challenges to the new laws, and for a big drop-off in project activity — potentially with some effects on gold supply.

Here’s to self destructing.

By Dave Forest

More Top Reads From Oilprice.com:




Back to homepage


Leave a comment

Leave a comment




Oilprice - The No. 1 Source for Oil & Energy News