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Monday, 29th January 2007 (2057 views)

Africa could be set to grab back mining rights from a number of global companies, according to a leading inter-governmental body.

Dr Yash Tandon, executive director of the South Centre which represents 49 developing countries, believes that many African governments are concerned that they are missing out on significant commodity incomes due to the continued presence of international mining companies.

This means that nations such as Tanzania could seek to take back lucrative mining operations in the near future; especially as such firms report high profits and escalating share prices.

Dr Tandon, speaking to the Observer, explained that it would only be "a matter of time" before the countries started to change their current mining policies and that the mining firms could face removal of their permits within the next five years, if not earlier.

He added: "To some extent, African countries have been a victim of the myth that, if they don't open up their markets to investment, it won't come. They have been competing to give concessions to mining firms and banks.

"I don't believe the Tanzanians get more than five per cent of gold. The rest is externalised."

 

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