(Updates with activists comments)
Tanzania's Chamber of Energy and Minerals said Tuesday it has
urged the U.S. to remove the country from a list of nations linked
to conflict minerals in eastern Congo to try to protect its gold
exports.
The move by the U.S. could tarnish gold produced in Tanzania,
which would affect exports from Africa's fourth largest gold
producer, said Ami Mpungwe, the head of the industry body
representing mining companies operating in Tanzania.
"Tanzania is not a source of conflict minerals, and there is no
reason we should be affected by the proposed restrictions,"
Tanzania deputy energy and minerals minister Adam Milima said of
the rules, which are part of the U.S. Dodd-Frank financial
regulatory reform bill passed last year.
Among the conflict minerals cited in the legislation are gold,
cassiterite or tin ores and coltan from Congo and at least nine
other countries. Congo is Africa's largest tin producer, supplying
around 5-7% of global output.
Mike Davis, the head of Conflict Resources team at global
advocacy group Global Witness, told Dow Jones Newswires a bulk of
the gold mining in Tanzania is in large industrial operations that
should have little difficulty meeting the requirements of
Dodd-Frank.
"It's important to keep in mind here that the act is not about
embargoing or black-listing countries, it is about reporting on
supply-chain controls," he said. "It is unlikely that it is going
to require the major gold miners in Tanzania to gather information
that they do not already have. The only difference is that they
will now have to disclose" it.
However, he added that Tanzania's main port of Dar Es Salaam
along with Kenya's Mombasa is a key gateway for Congolese conflict
minerals leaving the continent. "It is crucial that the Tanzanian
government takes steps to ensure that minerals that have benefitted
the armed groups in eastern Congo...do not pass through its
territory," he added.
U.S.-based companies beginning April 1 will be required to
ensure the minerals they procure from Congo and nine other
adjoining countries aren't from rebel-controlled mines. The
legislation is intended to stop illegal mineral dealings from
funding the conflict in eastern Congo, which is blamed for the
killing of at least 5 million people since the late 1990s.
Companies operating in Tanzania include London-listed Africa
Barrick Gold (ABG.LN), a unit of Canada's Barrick Gold Corp. (ABX);
South Africa-based Anglogold Ashanti Ltd. (AU); and Australia-based
Resolute Ltd. (RES.AU).
Last year, Tanzania's 2010 gold output rose by 9% to 44.6 metric
tons.
-By Nicholas Bariyo, contributing to Dow Jones Newswires;
256-75-2624615 bariyonic@yahoo.co.uk