TanzaniteOne rejects calls to give 50pc stake to govt firm
A Tanzanite miner in the Mererani mine. The Tanzania government passed a new mining law requiring foreign-owned companies cede a 50 per cent stake to citizens. Photo/Matt Brown
A new mining law, requiring foreign-owned companies to cede a 50 per cent stake to the public in Tanzania, is threatening to cripple the thriving $500 million Tanzanite gemstone business.
One company, TanzaniteOne, has rejected a demand by the government to relinquish half of its shares to the State Mining Corporation (Stamico), setting the stage for a major dispute.
