Tanzania has started to earn from the royalty rates under its new Mining Act in 2010, The Citizen newspaper reported.

The paper reported that big gold mining firms present in Tanzania, including Geita Gold Mines, African Barrick Gold (ABG) Limited and Resolute Gold Mines Ltd, after a series of negotiations with the government, have started abiding with the new mining law.

The new Mining Act in 2010 stipulated that royalty rates for gold and uranium be increased across the board with calculations based on gross profits rather than the previous which was built on net values.

Tanzania's royalty rates are now fixed at 4 per cent and 5 per cent for gold and uranium. Diamond miners, on one end, will still continue to pay 5 per cent.

"We have been in good progress in our negotiations with the big gold mining companies. The three gold miners, ABG, Geita Gold Mines and Resolute have begun to pay royalties of 4 per cent," Ally Samaje, commissioner for minerals in the Ministry of Energy and Minerals of Tanzania, was quoted as saying by The Citizen report.

Mr Samaje also added at least six gold mining projects, four of which were under ABG, have already paid royalties and taxes under the new mining law.

"With these positive developments, we want to see more benefits to Tanzanians, especially those surrounding the mines. This is possible through corporate social responsibility programmes," he said.

"Gold mining projects now are in a better advantage than they were a decade ago. We are also in a better position to negotiate with investors so that they spread more benefits to the citizens in terms of corporate social responsibility projects," he added.

The new mining act superseded the previous Mining Act 1998. Although it helped liberalised Tanzania's mining sector and invited an outpour in foreign direct investment, Tanzanian nationals believed the country, through the old act, still failed to extract a fair deal from the mining firms.

"There is a need to further educate stakeholders and Tanzanians in general on implementation of 2010 Mining Act, because a lot of developments have taken place, but many people are still harbouring doubts," said Stephen Masele, deputy minister for Energy and Minerals.

However, activists believed the increased royalty is still not enough.

"The royalty is still small when you compare to the profit the gold mining companies are earning. There are African countries, such as Ghana and South Africa, which are charging royalties of more than five per cent," Bubelwa Kaiza, executive director of Fordia, said.