Tanzania Briefing: New Local Content Submission Guidelines And Integrity Pledge Regulations

In this briefing, we summarise the key provisions in the Integrity Pledge Regulations and the Local Content Submission Guidelines.

Introduction

On 13 July 2018, the following new mining regulations and guidelines were issued in Tanzania:

Mining (Integrity Pledge) Regulations 2018 (Integrity Pledge Regulations) Mining Commission (Guideline for Submission of Local Content Plan) 2018 (Local Content Submission Guidelines) Integrity Pledge Regulations

The Integrity Pledge Regulations are made under section 106(3) of the Mining Act 2010. This section states that the Minister of Minerals "shall make regulations guiding compliance with the integrity pledge". Some of the key provisions in the Integrity Pledge Regulations are as follows:

Application - The Integrity Pledge Regulations apply to persons who are undertaking prospecting and mining activities (a Mineral Right Holder). Whilst the 'application provision' limits the Integrity Pledge Regulations to Mineral Rights Holders only, some of the provisions of the Integrity Pledge Regulations seem to extend to subcontractors and any other person engaged in undertaking mining activities (a Mining Sector Stakeholder). Signing of Integrity Pledges - A Mineral Right Holder must submit an executed integrity pledge to the Mining Commission. The Integrity Pledge Regulations provide a prescribed format of the integrity pledge. Also, the Mineral Right Holder is responsible for ensuring that its sub-contractors and any other person engaged in the Mineral Right Holder's mining activities complies with the executed integrity pledge. Objectives of Integrity Pledges - One of the objectives of integrity pledges is to reinforce corporate governance, integrity, transparency and accountability in the daily operational processes and procedures of companies and businesses involved in the mining industry. Code of Conduct - Mineral Right Holders and Mining Sector Stakeholders are now required to establish and maintain a compliance programme throughout the term of the relevant licence, which includes: a written code of conduct, policies and procedures, training, awareness campaigns and education and notification of government's investigation or legal proceedings. It remains unclear whether the words in italics imply that the Mineral Right Holder and the Mining Sector Stakeholder are now required to publicize/publish investigations against them regarding their failure to comply with the integrity pledge. Also, Mineral Right...