Africa will emerge as a mining investment hotspot in the coming years, more preferable to investors than Europe, Latin America and North America, according to the Mining Global Investment Outlook 2017 report issued by Fitch Group’s BMI Research. Low production costs and high-grade reserves position Africa to achieve the ideals of the Africa Mining Vision: transparent, equitable and optimal exploitation of mineral resources to underpin broad-based sustainable growth and socioeconomic development for the benefit of all Africans. Recent development in two African jurisdictions have, however, given cause for pause. Tanzanian President John Magufuli has brought into effect amendments to the country’s Mining Act, which include requiring the government to own at least a 16% share in mining projects with the option to buy up to a 50% share. Magufuli also increased the royalty payable on mining revenue from 4% to 6% and introduced a 1% clearing fee on mineral exports. He brought into law the...
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