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Is the British/Canadian desperation for Tanzanian gold a result of recession?

Discussion in 'Jukwaa la Siasa' started by Kibanga Ampiga Mkoloni, Jun 30, 2012.

  1. Kibanga Ampiga Mkoloni

    Kibanga Ampiga Mkoloni JF-Expert Member

    Jun 30, 2012
    Joined: Aug 9, 2007
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    With commodity demand soaring, the world's mining companies are increasingly turning to Africa to deliver resources to growing economies. Foreign investment on the continent has grown 87 percent in the past decade.

    Major foreign gold companies like Barrick are announcing “too little too late” incentives like increasing the royalty of Gold to Tanzanian government for example, by 1 percent.

    Tanzania has been selling gold to these foreign mining companies at the price of gold that was in effect some 10-15 years ago when the mining contracts were signed.

    When the country opened its doors to foreign investment, it had no experience in dealing with multi-national companies. It was duped by the World Bank/IMF advises, which has resulted in them selling gold at the very low price, despite a huge rise in the price of gold over the years.

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