Tanzanian Royalty Exploration Corporation

2018 - Good Political and Economic Climate for Investing in Tanzania - Seite 2

In the two years President Magufuli has been in office, the investment landscape has changed dramatically in Tanzania. Magufuli chairs the Tanzanian National Business Council (TNBC) scheduled to meet Monday. The Council is a demonstration of the Magufuli Administration's commitment to engage with private industry and create a framework to attract local and foreign investments into a stable business environment. "President Magufuli will be viewed with international interest as he transforms the nation's economy," Sinclair, said. Many positive and transformative initiatives have been put into place by the Magufuli administration. Initiatives and new laws have been promulgated to stabilize and regulate matters from the mining industry to protecting Tanzania from illegal fishing. Of significant note, last week President Magufuli was awarded the Mandela Peace Prize. The changes in Tanzania have been achieved by Magufuli, and he has done so in a manner which protects and preserves not only life, but the quality of life as indicated by this prestigious award. "Magufuli has insisted on the protection of local industrialists. It was part of his stated agenda in 2015 and he is putting his initiatives into practice in a manner which is fair to private industry and balances the protections of the economic interests of Tanzania. The movement of Tanzania into the 21^st Century international community has been a metamorphosis which will benefit the nation and its investors," Sinclair continued.

What is occurring in Tanzania is similar to what is being seen in other mineral rich, economically underdeveloped countries. A few examples of the trend toward equitable host nation treatment can be seen in Guatemala, Indonesia, Mexico, numerous countries in South America, Africa, Greece and Turkey.

Tanzanian Royalty is, and has been, ahead of the curve with respect to equitable arrangement with its host nation during the past 20 years, and specifically with the Buckreef Project Joint Venture Agreement in the past decade. The Joint Venture Agreement can be viewed on EDGAR or SEDAR. Tanzania now requires new mining industry contracts to be in the form of the Buckreef agreement. The Company's agreement with Tanzania is the exact model currently required. This is critical for investors to know in order to understand the relationship between TRX and Tanzania. The Buckreef Project Joint Venture Agreement provides for profit sharing which exceeds current minimum statutory requirements of Tanzania, i.e. profit sharing TRX (55%) and Stamico, the state owned mining company (45%). This agreement existed before the minimum required profit sharing laws were enacted, and this good relationship with Tanzania precludes government intervention in our mining operations due to a long standing, existing fair and equitable agreement.  The TRX agreement with the government is unique in that Tanzania not only owns 45% of the profits, but also 45% of the entire asset. The Buckreef Project is robust enough to easily support the 55%/45% arrangement with Tanzania. New laws adopted to secure profits for the host nation make Tanzania a nation of laws and regulations which maintain and support a stable and attractive economic environment for the mining industry.