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Thursday, 30th November 2006 (2070 views)

The Tanzanian prime minister has met with Canadian gold mining companies operating in his country to discuss the possibility of raising Tanzania's mining royalty.

According to the Guardian newspaper of Tanzania, Edward Lowassa is hoping to agree an upgrade of the current royalty in order to ensure that the country is reaping the benefits of its mining wealth.

Currently the royalty stands at three per cent, but the Tanzanian president Jakaya Kiwete has said he would like to see a two-digit royalty.

The state government argues that since gold prices have risen from $200 per ounce to $600 per ounce since the original contracts were signed, there is a need to increase the royalty so that Tanzanian citizens can benefit from the increased wealth.

Prime minister Lowassa has reportedly said that Resolute Mining and Barrick Gold Tanzania have both agreed to consider increasing the country's royalty, and that he hopes they can be convinced to do so when he meets with them again.

 

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