The Citizen (Dar es Salaam)
Faraja Jube
10 July 2009
Dodoma — The Government yesterday said it will take appropriate action on the North Mara Gold Mine row.
Prime Minister Mizengo Pinda told Parliament that the Government did not enter into a protective contract with the investor.
He was responding to queries by Kigoma North MP Zitto Kabwe (Chadema) who challenged the Government on what he termed as a foreign investment protection agreement it entered into with Canada.
The MP said the agreement allows the Canadian government to protect its investors as well as their interests, citing the North Mara Gold Mine as a case in point.
"On July 24, last year, during the 12th session of Parliament, I queried over negotiations between the Government and Canada on foreign investment protection agreements. A year has since passed without any feedback," Mr Zitto said.
"I guess such agreement protects Canadian interests including wrongdoings such as what has happened in North Mara. In this case, I wanted to know precautionary measures taken by the Government to avoid such bonding agreement," he said.
In response, Prime Minister Pinda assured Parliament that foreign investment protection agreements were too general, aimed at attracting investors and not to be too protective on them.
"Such agreements are quite normal, whose objective is to create a conducive atmosphere for investors," noted Mr Pinda.
"These are normal agreements we have entered into not only with Canada, but also with other countries such as the United Kingdom . In such agreements, the most important thing is to be careful to avoid bonding clauses," he said.
He said the Government was closely following up the issue of North Mara Gold Mine, and will not hesitate to take appropriate measures according to the contractual agreement with the investor.
The Barrick gold mine in Tarime District, Mara Region, has recently come under spotlight after the media reported on a poisonous seepage from the mine that has allegedly caused the death of over 20 people and 270 head of cattle around Nyamongo area.
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