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Tanzania: Ewura CCC Urges Bunge to Probe Extractive Industry


February 9, 2012

THE parliament should continue pressing for access by its members to all contracts signed between the government and private investors in the extraction of natural resources to get rid of the problems that shroud the mining sector in the country.

According to the Chairman of Energy and Water Utilities Regulatory Authority Consumer Consultative Council (EWURA-CCC), Professor Jamindu Katima, most of the problems with contracts signed between the government and private firms in the extractive industry emanate from secrecy.

These contracts are top secret which not even parliament can access easily,” said Prof Katima who is also the Principal of College of Engineering and Technology of University of Dar es Salaam.

He said all contracts in the gas subsector need to be reviewed if proved to be faulty as was the case with Pan African Energy which faces accusations of evading taxes in the tunes of billions of shillings while inflating prices of gas supplied to Tanzania Electric Supply Company (TANESCO).

Apart from Songas and Pan African Energy, others companies extracting and supplying natural gas include Canadian Wentworth Resources and French Morel & Prom which are operating at Mnazi Bay in Mtwara region.

Lawmakers should continue to press the executive so that they can access all contracts and where necessary review them,” the Nobel Laureate said. Prof Katima who is a 2009 joint Nobel Laureate argued that Songas Limited may have signed another bad contract with Tanzania Petroleum Development Corporation which needs to be reviewed as its power tariffs to Tanesco are also excessive.

The don however warned against any attempt to undo such contracts. “I do not support severing such contracts because experience has shown that it becomes twice a burden to the public,” he pointed out naming Dowans Holdings Limited as the latest example…Read more.

South Africa’s Shabangu assures world of bold new mine law reform

Mining Weekly

By Martin Creamer

October 27, 2011

JOHANNESBURG ( – South Africa’s Mineral Resources Minister Susan Shabangu has promised bold new South African mine law reform at a top world forum.

Shabangu told a Commonwealth South Africa-Australia forum in Perth that she was pioneering objective criteria in the processing and granting of both prospecting and mining rights.

Moreover, mining rights would be granted with water-use licences and environmental authorisation, to create a single integrated licencing system and, for the first time, rights holders would be allowed to subdivide and sell portions of their rights.

“These are critical steps in our attempt to ensure that our mining regulatory system conforms to international best practice,” the Minister said.

The construct of the Mineral and Petroleum Resources Development Act was being beefed up to remove ambiguities and possibilities for the multiplicity of interpretations and South Africa’s new electronic Samrad mineral-rights application system had transparently processed more than 2 000 applications since being introduced on April 18.

The Department of Mineral Resources (DMR) was also currently reviewing the Mine Health and Safety Act to remove ambiguity and to strengthen enforcement.

In a reiteration of her forceful anti-nationalisation stance, she reminded South Africa’s naysayers that South Africa had successfully pulled itself from the economic brink in 1994.

“We were successful in doing it then and I’m convinced we’ll be successful in doing it again,” she said.

The DMR had completed its beneficiation implementation plans for the iron/steel and energy sectors, and would finalise its implementation plans early next year for the beneficiation of pigments and titanium metal production, autocatalytic converter and diesel particulate manufacture, and jewellery fabrication.

Shabangu was pleased that the Commonwealth heads of government had afforded South Africa a chance to present its case.

“We’re part of the global community of nations, with all the benefits and obligations that go with it,” Shabangu said, adding that South Africa was driven to better the lives of all of its citizens with the help of its vast mineral resources.

It had not escaped the DMR that some of the biggest players in the resources sector owed their very existence to South African origins.

Meanwhile, as host to the global 17th Conference of the Partners climate-change summit, South Africa had an extraordinary obligation to lead from the front and create a mining industry that was in tune with international environmental conventions and agreements.

Tensions between communities and mining companies had to be resolved as a matter of top priority, with full consideration for the welfare of the communities and workers.

In addition to their contribution to foreign exchange earnings and taxes, she urged mining companies to continue to work with South Africa to give effect to the reasonable targets that were spelled out in the Mining Charter, including optimal local procurement, the promotion of entrepreneurship and the elimination of single-sex hostels.

“These are not luxuries; they’re a critical part of our attempts to right the wrongs of the past,” she said.

Despite the long and difficult road ahead, she was convinced that a South Africa could be forged that belonged to all the people living in it, as promised both in the Freedom Charter and the Constitution.

India, South Africa Trade Deal to Foster Joint Ventures

September 23, 2011

By Dilipp S Nag

RAPAPORT… India’s Minister of State for Commerce & Industry, Jyotiradiya Scindia, stated that there are tremendous prospects for South Africa‘s diamond mining companies to enter into long term contracts with the Indian diamond firms and rough purchasers such as Diamond India Ltd. and MMTC Ltd.

India and South Africa on Thursday agreed to strengthen bilateral cooperation in the micro, small and medium enterprise (MSME) sector through joint ventures, technology collaborations and marketing partnerships, the government said in a statement.

”There is, however, ample scope of diversifying the existing trade basket by bringing in many more manufactured goods,” said Scindia, who is in South Africa for one-day official visit. He met with South Africa‘s Deputy Minister for Trade & Industry, Elizabeth Thabethe, and discussed several ways to boost trade.

South Africa is India’s second largest trading partner in Africa. The trade between two countries was at $10.6 billion in the fiscal period of 2010-2011 and is expected to reach $15 billion by 2014.

”The MSME sector accounts for a large share of industrial output, employment and exports in both countries. There are immense opportunities of cooperation and strategic alliances,” Scindia stated.

He added that there is also tremendous scope for co-operation and joint ventures between public sector undertakings of the two countries in the coal sector.

Scindia also expressed hope that the India-SACU Preferential Trade Agreement (PTA) will be concluded soon, which will give a considerable boost to India’s exports in the whole of southern Africa.

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