Shanta Gold Limited (LON:SHG) has told investors it will seek advice after the Tanzanian government approved a new law that will impose a 1% clearing fee on all mineral exports from the east African country.
Under the new Finance Act, the government will also set up clearing houses at international airports, mines and border points where the value of shipments will be officially verified.
AIM-listed Shanta’s New Luika gold mine is located in the south western part of Tanzania, while it also has several prospecting licences in the country.
Tanzania’s response to Acacia saga
By introducing the new clearing fee, Tanzania is looking to bag a bigger share of the revenues from the east African country’s natural resources. It also allows it to keep a closer eye on exactly how much is being exported and by whom.
The government hopes that a more vigorous export process will also reduce the possibility of situations like what is alleged to have gone on at Acacia Mining PLC (LON:ACA) from happening again.
A recent audit launched by President John Magufuli accused Acacia of exporting ten times more gold from Tanzania than it had declared and the miner was subsequently banned from exporting gold-copper concentrate from its two mines in the country.
For its part, Acacia has always denied wrongdoing and its majority shareholder Barrick Gold Corp (NYSE:ABX) agreed to stump up some compensation earlier this month to settle the dispute.
The new law comes into effect from tomorrow (1 July), while there is also a separate proposed legislation which is due to be debated by Parliament.
The legislation recommends changes to the legal framework governing the natural resources sector in Tanzania, Shanta said.
Shanta shares edged 2.3% lower in early deals to 5.25p.
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