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Tanzania: Mineral Royalty Negotiations at Advanced Stage

Discussion in 'Jukwaa la Siasa' started by nngu007, Jun 2, 2012.

  1. nngu007

    nngu007 JF-Expert Member

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    Tanzania Daily News (Dar es Salaam)



    BY FINNIGAN WA SIMBEYE, 31 MAY 2012



    Negotiations between the Ministry of Energy and Minerals and mining companies on reviewing royalty paid from minerals are at advanced stage with Tanzania Chamber of Minerals and Energy (TCME) expecting to give its position next week.


    A Consultant from Africa Practice, a communications firm which handles TCME media affairs, Teweli Teweli, said the government chose to negotiate with individual companies as per their mining development agreements (MDAs) and not the whole industry through the Chamber.

    "As the industry, the Chamber will have its official position by next Wednesday," Mr Teweli said. The former Barrick Gold Corporation Communications Manager, said African Barrick Gold which announced last week that it has agreed to raise royalty paid to the government by a per cent to 4 per cent, was based on lengthy negotiations.


    "Other mining companies are also negotiating separately with the government as per their MDAs," Teweli said.


    Last week, ABG which is the largest gold miner in the country with four mines at Bulyanhulu, Buzwagi, Kahama and Tulawaka also agreed to pay the royalty based on a new revenue formula.


    The formula takes into account the gross sale value of gold sent abroad instead of its net value at point of export. The minerals ministry said in a statement that talks are proceeding with Anglogold Ashanti Ltd, which owns the Geita gold mine, and Resolute Tanzania Ltd, which owns the Golden Pride mine, to accept to pay new royalty rates.


    The country started undertaking major reforms of the mining sector in 2010 following the release of Judge Mark Bomani Mining Sector Review Commission report which among other things, suggested the royalty be increased. The ministry said seven gold-producing mines in Tanzania had paid 341.57bn/- in royalties between 1998 and last year. It said large-scale gold mines in the country had invested some $2.92bn during the period.


    "The mines posted total output from 1998 to 2010 of 12.56 million ounces of gold," said the minerals ministry, adding that the total gold produced during the period, and its by products of silver and copper, was worth 7.53bn USD. ABG alongside Anglogold Ashanti and Resolute Tanzania have also already started to paying corporate tax.


    The government has also urged ABG to sell at least 10 per cent of its shares to local taxpayers through Dar es Salaam Stock Exchange (DSE) after the mining company cross-listed on the local bourse last December. Barrick Gold Corp, the world's biggest gold miner, owns around 74 per cent of the shares in ABG, with the remaining stake held by external investors.

     
  2. nngu007

    nngu007 JF-Expert Member

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    This is furstrating Barrick Gold only raised their Royalties to 4%; but I did post an article about one GOLD mine the CEO is

    The by the name of Kahama they agree with 55/45 %; The Company is Tanzanian Royalty Exploration Corporation; But I was

    told it is part of Barric Gold (Barrick Gold is the Mother Company).

    So, Why Tanzanian Royalty Exploration Corporation agreed on 55/45 % and not the Mother Company?

    On the part of our Government who was on the table of the Negotiations? Why Royalties Varies that much?

    We Really Need a New Government to restart all these Negotiations afresh, this is a stealing in a day light!!!
     
  3. J

    Jasusi JF-Expert Member

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    nngu007,
    I think Sinclair and his Barrick are playing a clever game. They have realized that CCM, which has been protecting them under Mkapa and Kikwete, may no longer be in power come 2015. They want to be able to say when a new government comes in that "see, we now have 55-45% in one of our companies," which is a smaller company, by the way, while the mother company continues to rip us off at a measley 4% royalties. We do not have to negotiate with these thieves. We must come up with a policy and ask them to take it or leave it.
     
  4. nngu007

    nngu007 JF-Expert Member

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    Definately... I'm sick and tired of their games is like one day they gave us a tea with Sugar and Cream the Other Day No Sugar but a lot of Cream... Damn Confusing!!!
     
  5. m

    mharakati JF-Expert Member

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    Why TCME is represented by a private co? does the real stakeholders of these mineral portfolios( sisi watz) have a say also through our representatives-the parliament and its committees? I think we ve taken this privatization matter to be a really private matter.
     
  6. A

    Apollnary JF-Expert Member

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    Nguu,
    Huwa sielewi kabisa haya mambo wanapoongelea suala la Madini na faida ama hasara tunayopata tokana na Madini
    Sijui nini maana ya Royality Tax katika Lugha rahisi ya mwananchi nisiyejua Uchumi.
    Halafu,huwa nashindwa kuelewa wanaposema ni asilimia 3 ama 4 (royality tax),wanakuwa wanamaanisha nini?

    Chukulia mfano kwenye habari yako uliyoitoa hapo juu
    Hao "Ivestors" waliinvest dolar bil 2.2 kuanzia 98-2010
    Hela iliyopatikana tokana na Madini kwa kipindi hicho ni dola bil 7 na ushehe
    wao wamelipa shilingi bilion 341(hizi ni sawa na dola mil 213?)
    Kwa hiyo kwa mahesabu ya hapo juu,ina maana faida ya madini ni sawa na (dola bilioni 7-dola bilion 2.2=dola bilion 4.8?)
    Na kama sie tunaachiwa dola mil 213,ina maana wao Investors wanapata dola (bil 4.8-dola mil 213=dola bil 4.587?)
    hizi dola bil 4.587 ni clean faida?(kwamba wameshalipa mishahara na mambo mengine yooote?
    Ama ni kwamba kuna mambo mengine mengi ambayo hatuyajui kiasi kwamba huwa hatuyapigii mahesabu?manake siwezi nikataka kuamini kwamba eti kuna watu walikaa chini na kukubali mkataba utakao sound hivyo.....Ama hakuna mahesabu yaliyopigwa kuweza ku evaluate biashara itaendaje?
    Yani ninajaribu kufikiria kama mnavyosema ati royality kwenye hiyo kampuni nyingine itakuwa 55 percent....55 percent ya kitu gani?ya faida?ama ya Gross sale?
    Sasa huwa nashangaa kwa mfano,kwenye ile kamati ya ku review hizo royality,walikuwepo pia na watu kama kina Zito,na mwisho wake nadhani wakasema iongezwe angalau ifikie 4 percent,sasa ina maana hata kamati ilikuwa inakubaliana kabisa kuona 4 percent hapo ndo "win-win " situation?....ama kuna jambo huwa halielezewi vema?
    Yani ninadhani kuna mambo mengi sana wananchi hatuelewi kuhusu biashara hii ya uchimbaji wa madini inafanywaje,kiasi kwamba tunashindwa kuelewa nani ana makosa....
    Ninajaribu kuwaza kama hizi mambo ya Mafuta wanayosema tunayo,na makampuni ya kigeni yanafanya exploration now kwa miaka nenda rudi...Je ni nani anawalipa kufanya hizo exdploration?Je mafuta yatakapoanza kuchimbwa,nani atanunua mashine za kuchimbia?serikali ama wao?na Je watalipweje kama watakuwa ni wao ndo wameleta hizo mashine?..yaani huwa nashindwa kabisa kuelewa
     
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