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Thursday, 26th October 2006 (5768 views)

Tanzania is now Africa's third biggest gold producer due to the country's investor-friendly policies.

The World Bank says that at least half of the country's foreign exchange earnings each year are made up of gold exports and gold mining is one of its fastest growing industries.

Companies who mine gold in Tanzania only have to pay no royalties, but no corporate taxes until they have got back their original investment.

However the government now wants to earn more from the private mining sector and has been meeting with officials from mining companies.

Deo Mwanyika, executive general manager for corporate and legal affairs at Barrick Gold, said: "We are exploring what areas can be improved, what areas can be reviewed".

Some of the firms operating in the country include South Africa's AngloGold Ashanti and Resolute Mining who hails from Australia.

Mr Mwanyika said: "The prospect for the mining industry in Tanzania is very, very bright if the government will be predictable and consistent."

Barrick operates the Bulyanhulu gold mine in the country and by the end of 2005 the company had accrued 10.7 million ounces of gold from this mine alone.

 

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