Tanzania: Magufuli administration to enforce the listing of mining firms on stock exchange

The measure will offer Tanzanians a share of the mining industry’s profits

Tanzania’s president John Magufuli said his administration will enforce a new rule requiring mining firms to list on the local stock exchange by August this year 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 Plc., 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 late Tuesday.

The Magufuli administration issued regulations last year requiring holders of special mining licenses to sell a 30 percent stake in their companies via an initial public offering (IPO) within 2 years.

Tanzania’s mining ministry amended the rules in February and set a new listing deadline to August 23.
Tanzania is Africa’s 4th-biggest gold producer and also has vast deposits of coal, uranium and precious gemstones.
Magufuli said he hoped IPOs would bring more transparency and offer Tanzanians a share of the mining industry’s profits.

Since coming into office in November 2015, Magufuli has launched a crackdown on corruption and tax evasion targeting large companies, particularly mining and telecoms firms.
Major mining companies have confirmed that 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, told reporters.

AngloGold Ashanti owns the Geita gold mine in northwest Tanzania.
Petra Diamonds, which holds a 75 percent stake in the Williamson diamond mine in Tanzania, said it was also in discussions with authorities on the listing rule.
Acacia Mining Plc., had no comment when contacted by reporters, but said last month while releasing first-quarter earnings its 3 gold mines in Tanzania would be affected by the listing requirement.

The planned mandatory listing of mining companies comes after implementation of separate regulations requiring telecommunications firms list on the local stock exchange.

Source: Reuters