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The Telegraph: Tanzania upsets African Barrick Gold investors

Discussion in 'Jukwaa la Siasa' started by nngu007, Oct 21, 2011.

  1. nngu007

    nngu007 JF-Expert Member

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    African Barrick Gold, the London-listed miner, saw its shares hit by fears the Tanzanian government is angling for higher royalties, even as the company reported record profits.


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    Everyone wants a slice of the pie when the gold price soars Photo:
    Reuters


    [​IMG]
    By
    Emma Rowley


    12:49PM BST 20 Oct 2011

    The shares fell 6.2pc, closing down 35p at 529p, after it emerged that the Tanzanian government wants the company to agree to raise the royalties it pays on revenues from 3pc to 4pc, to fall in line with new legislation.

    The move illustrates the increasing jostling between miners and governments over how to share the returns from the high prices fetched by gold and other commodities.

    Existing gold miners in the east African country have legally binding agreements in place meaning that such a move would have to be voluntary, said Greg Hawkins, the company's chief executive.

    "[Our rates] haven't changed," he said. "Having said that, the government is certainly keen for us to move to the new rate. We, as an industry, have been in discussions with them.

    "We are looking at it [from the point of view] that we are there for the longer term … they are looking at it from a point of view of getting a balance in terms of funds into the government coffers."

    He sounded optimistic that African Barrick would not have to pay the higher rate until its current agreements expire, because of the risk arbitrary government action poses to companies' investing. "It's a pretty good relationship, he said.

    Nonetheless, the developments unsettled investors, despite the company revealing it is sitting on a massive $525m (£333m) cash pile, after its gold hit a record average price of $1,774 an ounce in the third quarter of the year, up 44pc.

    The world's demand for gold, seen as a safe haven amid falling equity markets, helped pre-tax profits reach $148.7m for the three months to the end of September, against $60.9m for the same period a year earlier. Net profit was a record at $102m.

    African Barrick warned that in addition to government moves to increase their slice of the pie, labour costs are going up as the industry's relatively small pool of workers sees the scale of companies' returns and also find themselves more in demand.

    "The reality is you can't enjoy every dollar of the gold price increase but we are currently capturing the vast majority of that in the margin," said Mr Hawkins.
     
  2. Mpita Njia

    Mpita Njia JF-Expert Member

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    Now, I close my fingers to see how the government is going to enforce this new law. And listening to Ngeleja in Arusha during the mining and energy meeting earlier this week, he sounded optimistic that the companies have already agreed on the move, kumbe wapi
     
  3. M

    Mdondoaji JF-Expert Member

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    Waache wakasirike wezi wakubwa royalties ya 4% ni ndogo sana. Nafikiri wakati wa kubembeleza ufikie kikomo wakitaka wachukue hilo au wapishe wengine wenye kutaka waje kuchukua. Dhahabu inauzwa $2000 sisi tunawauzia $500 huo ni wizi mtupu. Tena ningelishauri Ngeleja awaambia pia tungelitaka Barrick Tanzania iwe listed in DSE na mauzo ya dhahabu ya Barrick Tanzania yawe tax deductible.
     
  4. nngu007

    nngu007 JF-Expert Member

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    The Company is listed in London Stock; and they see the shares goes up the roof but they scared of Tanzania Government increasing royalties, even though the company is making profit.

    It is Shame to Barrick Company; they are only wanted to take what Tanzania has they don't care about the country prospects at all.
     
  5. Kakati

    Kakati Senior Member

    #5
    Oct 21, 2011
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    Watanzania tunatakiwa kuandamana nchi nzima kudai Barrick atoe royalty 97% naye abakie na 3% na sio kinyume chake kama ilivyo sasa.
     
  6. Mr. Zero

    Mr. Zero JF-Expert Member

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    After all this time yaani wamekuja na 4 % tu???

    Hiyo mining law badala ya kung'ang'ania ako ka 4 % wangehangaikia share ya atleast 30 % pamoja na coorparate tax!! Nchi kama Botswana, Namibia na RSA wao wanapata mgao kwenye share, tax pamoja na loyallity ya 3 to 5 %.

    Sisi Mabwege tunaishia na loyallities tu!!
     
  7. BONGOLALA

    BONGOLALA JF-Expert Member

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    Waondoke kabisa hatuwahitaji 4percent ndogo sana,inatakiwa 40-50!
     
  8. Njowepo

    Njowepo JF-Expert Member

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    Tanzania aka shamba la bibi
    Atakuja Farao asiyemjua Musa mtapata shida sana!
    Yaani increment ya 1% wapi na wapi?
    Ila sishangai as am sure nyingine inakwenda kwa viongozi kama takrima,tender ya kusupply vyakula mgodini ali kadhalika mafuta!
     
  9. The Spit

    The Spit JF-Expert Member

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    Tanzania as a country is a joke!...am hurting,really hurting,I feel like wanna grab 38mm and take em all these devils!!!..They have killed our natural fortune,our blessing from God!
     
  10. Achahasira

    Achahasira JF-Expert Member

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    Oct 21, 2011
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    eti hawa wazungu(wanaotawala uchumi ) kwanini wanatupangia bei?.eti nauliza wewe ukienda dukani huwa unajipamgia bei au muuzaji ndiye anayepanga?
    alafu wao wanapotuuzia sisi hatupangi bei.
     
  11. Ndahani

    Ndahani JF-Expert Member

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    Boraa kukumbuka shuka asubuhi wakati wa kuamka kuliko kusahau kabisa
     
  12. J

    Jasusi JF-Expert Member

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    Nani alikwambia mwekezaji yeyote anajali maslahi ya nchi? They are there to make money, profit, and the rest can go to hell.
     
  13. The Hunter

    The Hunter JF-Expert Member

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    Nasema kutoka moyoni, ipo siku hawa nguchiro waliosaini hii mikataba ya kishenzi watalipa! Huwezi kuwa umesomeshwa kwa kodi ya walalahoi then unasahau yote hayo na kukubali kuingia mikataba ya kishenzi kama hii! Huyo Ngeleja hasikitikii wasukuma wenzake wanavyonyanyasika katika ardhi yao wenyewe.
    Mkoa umefanywa mahandaki lakini yeye hajali! ipo siku atajibu hayawani mkubwa.
     
  14. Lunyungu

    Lunyungu JF-Expert Member

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    Ngeleja kiingereza hajui nawaambieni kama lugha iliyotumika ni kiingereza basi ndiyo alitoka na yake .Mie nimesha kaa naye kwenye mkutano hakika nilishangaa uelewa wa jamaa ni mdogo au kiburi cha madaraka lakini lugha ilileta utata hadi akavunja mkutano alikuwa mwenyekiti yeye .
     
  15. Kibanga Ampiga Mkoloni

    Kibanga Ampiga Mkoloni JF-Expert Member

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    Kumbe sasa hii ina ISHA LINI?
    Srekali I-STOP kuwapa maeneo mapya kwa ajili ya kuchimba.
     
  16. K

    Kamundu JF-Expert Member

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    Hakuna Mtanzania anarithika na hata 5%. Serikali kama inataka kupata pesa kwenye miradi kama hii ni ku Invest kama 20% hivi na kugaiwa kwenye tax na kwenye faida. Serikali haiwezi kuanza kupigana vikumbo na 1%, serikali imechemsha hapa.Kuna bado miradi mingi tu ya Gas na Gold serikali ihakikishe inanunua share badala ya kutegemea royalities za 3% au 4%
     
  17. m

    mkambodia Member

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    bure kabisa! its so scandalous it hurts!
     
  18. FaizaFoxy

    FaizaFoxy JF-Expert Member

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    Why would you expect enforcement?
     
  19. nngu007

    nngu007 JF-Expert Member

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    Tatizo ni INVESTORS kwenye STOCK hawajui kuongezeka kwa USHURU kwahiyo sidhani kama itawezekana; Investors wanazidi kuwa Matajiri Watanzania Masikini
     
  20. SOBY

    SOBY JF-Expert Member

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    1. Nationalize Bulyanhulu (610m$) and Buzwagi (372m$).
    Since Hu Juntao can loan us 1bn$ for Mtwara - Dar pipeline, let's work with the Chinese govrnment on how to run these two mines after giving us a soft loan.
    May be we can go 80/20....
    2. Invest in STAMICO and NDC, heavily.
    3. Stop issuing mining lincences, till we come up with a sensible mining policy/act.
     
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