Local Content Policies in the Mining Sector: Scaling up local procurement 1.0 INTRODUCTION In a large number of resource-rich countries, the mining sector is an important driver of growth, in particular during commodity boom periods. This is a result of large investment inflows and revenue generation essentially driven by exports.
l. These Regulations may be cited as the Mining (Local Content) (Amendments) Regulations, 2019 and shall be read together with the Mining (Local Content) Regulations, 2018 hereinafter referred to as the "principal Regulations". 2. Regulation 3 of the principal Regulations is amended in the definition of the term "indigenous Tanzanian company" by
Example from Ghana of description of local content provisions in the mining regulation for different types of license holders Source: Ghana 2014 EITI Report on mining (p. 29) 3.2 DATA ON LOCAL CONTENT (EMPLOYMENT, PROCUREMENT, GOODS AND SERVICES) Chad,, Democratic Republic of Congo, Ethiopia, Ghana, Guinea, Kazakhstan,
Local content policies are critical to ensure that the maximum of benefits from production activities accrue to local economic actors. Yet, local content polices entail some distortionary effects in favour of local actors, which may be considered as too discriminatory if done in an unbridled manner. International trade and investment rules have,
The review included dedicated mining or petroleum sector or specific local content legislation, regulations, policy and contracts. 3 Those clauses are framed and singled out by a "thumb up". 4 Our criteria for assessment of the quality of the provisions were language that is less likely to present a loophole, i.e. less likely to be subject to ...
Second, because of the significant compliance and fraud risks that may arise from local content requirements in certain jurisdictions, companies operating in high-risk markets and industries should consider developing special compliance policies procedures for local content transactions. Given how local content requirements involve cross ...
Local Content Regulations applicable to the mining sector in Tanzania. Salient feature of these regulations in relation to their compliance with the WTO rules are as follows: An indigenous Tanzanian company should be given first preference in the grant of a mining license.
Fluor is exposed to a number of industries which have local content restrictions, including mining, energy, chemicals, and large infrastructure projects. Local content restrictions greatly affects Fluor's ability to do business. First off, it restricts …
increase local content (SI-Mining) Transport consortium implemented to incorporate greater number of Malian transport partners, with direct and positive impact on our License to Operate Accelerator program launched to build capacity and improve local suppliers management system and service quality 12 companies selected in the first cohort for ...
Local Content in the oil, gas and mining sectors is fast becoming a strategic factor in investment ... operating companies and public officials have few quantitative tools to inform dialogue over trade-offs or gauge the optimum levels ... Impact of New Local Content Regulations on Commercial Interests Optimising Local Content through Economic ...
Local Content Regulation as a Differentiator for Inward Investment in Africa: The Case of Sierra Leone Summary (3 pages) A Changed Context for Local Content With the current downturn in the global markets for oil, gas and minerals, and slower global growth more generally, the role of Local Content regulation needs to be re-thought.
Local Content Initiatives: Enhancing the Subnational Benefits of the Oil, Gas and Mining Sectors Some jurisdictions differentiate between local content and local participation; local content is defined as the quantum/percentage of locally produced materials, personnel, goods and services rendered to the oil, gas and mining industries.
The Local Content Regulations follow the amendments of the Mining Act, 2010 through the Written Laws (Miscellaneous Amendments) Act, 2017, which introduced the local content requirements. Local content regulations now require that at least 20% of a mining company operating in Tanzania must be owned by Tanzanian citizens, down from 51% ...
Local content in the oil, gas and mining sectors: ... content legislation and regulations outlining local content requirements. OGM companies can also commit to certain ... 2011). The impact on the local economy is also restricted when goods supplied to resources companies are merely imported, repackaged and resold by local firms (WBCSD, 2012). ...
18 Local content has, to date, focused on the oil and gas sector where …
Local Content Policies in the Mining Sector: Scaling up local procurement 1.0 INTRODUCTION In a large number of resource-rich countries, the mining sector is an important driver of growth, in particular during commodity boom periods. This is a result of large investment inflows and revenue generation essentially driven by exports.
Reading Time: 2 mins read. The Minister for Lands and Natural Resources, A. Jinapor, has asked mining companies in the Upper East Region to work in accordance with the regulations governing mining operations in the country and involve indigenes in their operations. He said, "Local content is absolutely key in the development of every ...
multinational oil and gas companies; it contains endogenous productivity effects in both goods and services markets through a Dixit-Stiglitz (1977) framework. Our model is in novative in that we assess the effect of local content provisions for multinational oil and gas companies, provisions that are highly contentious in WTO accession ...
The Regulations placed an obligation on contractors, subcontractors, licensees, or any other entity (relevant parties) carrying out mining activity to ensure that they had a …
Furthermore, whilst Local Content seems to be a recent fad, the policy has reflected in Ghana's mining legislation, since the Minerals and Mining Law PNDC Law 153 of 1986. The Law required that mining companies procured inputs from Ghana to the maximum extent possible consistent with the economy, efficiently and safely.
to hosted mining activity, this research focuses on the relationship between local procurement regulations and mining company practices in the South African and Namibian mining sectors. South Africa was selected as the "primary" country where legislated local procurement regulations have existed for a minimum of two years at the national level.
Local content has, to date, focused on the oil and gas sector where regulations and institutional controls, at least in West Africa, are now entrenched. This is changing, and there are early signs of a wave of local content regulation in the mining sector, which is likely to coincide with an upturn in the fortunes of both precious and base ...
Local Content Regulations applicable to the mining sector in Tanzania. Salient feature of these regulations in relation to their compliance with the WTO rules are as follows: An indigenous Tanzanian company should be given first preference in the grant of a mining license.
Local Content in Ghana-General Outlook Local content requirements have been present in many forms: •Minerals and Mining Laws since 1986, PNDCL 153 •Minerals and Mining Act 703 2006 •Trade and Investment laws since 1992, LI 1547 Local Content requirements contained in …
" Local content in the extractive industries is being given ever higher priority by host governments through a wide array of policy instruments. And oil, gas and mining companies now rate local content among the most significant expectations in the communities in which they operate.
New Mining (Local Content) (Amendments) Regulations 2019 have made some changes to the Mining (Local Content) Regulations 2018, which include:. Local shareholding requirement for indigenous Tanzanian companies reduced from 51% to 20%. Timeline extensions for review of local content plans by Mining Commission and Local Content Committee, starting at 60 …
South Africa's local content policies date back to the late 1990s and the South African Government has made use of a wide range of local content and production regulations to develop industrial capabilities while encouraging meaningful broad-based economic participation. These policies make
In South Africa, Namibia and Ghana mining companies are spending less and less on low and semi-skilled labour. Generally, technology is making mining less and less labour absorbing, raising questions about the primacy of the employment objective of local content legislation, making it less viable and increasingly difficult to enforce.
Local content policies encourage local employment and the use of local goods and services in backward-linked supply chains of companies active in a given country. While LCPs can apply to both foreign and domestic companies, they often focus on FDIs …
In this month's Finance Briefing we review the effects of the amendments to the Mining (Local Content) Regulations, 2018 on the operations of commercial banks in Tanzania.
