hata ingekua 2,200,000 tungekuwa tunasaga meno tu kwa uongozi wa kizaramo
Tuvumilie tuuuuuuuuuu, hakuna kulalamika
hv utulie hata kama,unataka kulwa tgo.amka wewe,badika thatha.Anza kudai haki yko,ili kizazi chako kijacho kufahd lasilimal.Kama nyerere na masela wake wangeshambulia leo,tungea na hali mbaya zaid na hpa.Moto ukiwaka kwako huach kuzma hta kama kila ki2 kimewaka.
Kaka namie nimesema hivyo maana nimepiga kelele weeeeeee lakini wapi
Gold mining companies pay more to govt at last |
Monday, 04 June 2012 08:41 |
Dar es Salaam. Giant gold mining companies, African Barrick Gold (ABG) Limited, Geita Gold Mines and Resolute Gold Mines Ltd have started abiding to the new mining law after concluding a series of negotiations with the government. The government enacted the new Mining Act in 2010 under which, among other things, raised royalty rates across the board by basing calculations on gross profits rather than net values as before. Royalty rates for gold are now fixed at 4 per cent, up from 3 per cent, that of uranium is 5 per cent while diamond miners will continue to pay 5 per cent. The new Act overruns the previous Mining Act 1998 which is credited with liberalising the sector and attracting a surge in foreign direct investment. But there was an outcry to the effect that Tanzania was not getting a fair deal from the mining firms. Both Presidents Benjamin Mkapa and Jakaya Kikwete formed a number of committees to study the shortcomings in the mining legislations and make proposals that would enable the country to benefit more from its mineral resources. Some of the proposals have been included in the new law. But the Mining Act 2010 could not legally affect those companies that had entered minerals development agreements with the government under the previous law. To that effect, the government went into negotiations with the miners in a bid to persuade them to adhere to some of the terms instituted under the new law, including pushing up the royalties. The negotiations, according to sources from both the government and the mining sector, have started paying off. Discussions included other issues that were not part of the new law, including convincing the miners to accept the ring-fencing practice income tax, according to the Commissioner for Minerals in the Ministry of Energy and Minerals, Mr Ally Samaje. Ring fencing entails limiting cost recovery for an extractive project to the revenues generated by that same project. The Income Tax Act has no provision for ring fencing on a mine-by-mine basis, leaving companies with the option of siphoning one mines revenues to offset anothers losses. We have been in good progress in our negotiations with the big gold mining companies. The three gold miners, ABG, Geita Gold Mines and Resolute have begun to pay royalties of 4 per cent. Technically, they have graduated from paying 3 to 4 per cent in royalty as per the new mining law, Mr Samaje said. The commissioner, who spoke on behalf of the ministrys permanent secretary, said there were six gold mining projects that are already paying royalties and taxes under the 2010 Mining Act. They include the four under ABG namely; Bulyanhulu, Tulawaka, Buzwagi and North Mara and Geita and Resolute gold mines. The fact is that the price of gold has been rising year after year. We believe gold dealers are fetching more profits now than ever before, he said, adding: The supply of gold in the world market is not increasing to match the demand; hence the rise in the price of the precious metal. He said while in 1999 world market prices of gold ranged between $250 and $300 per ounce, now the price of gold is $1,700 per ounce, which is almost seven times the price fetched by gold dealers more than ten years ago. Gold mining projects now are in a better advantage than they were a decade ago. We are also in a better position to negotiate with investors so that they spread more benefits to the citizens in terms of corporate social responsibility projects, he said. The commissioner for minerals said that such positive developments in implementation of the new Mining Act was a welcome move that must go hand in hand with increased benefits of the mining sector to national economy. With these positive developments (Mhhh!), we want to see more benefits to Tanzanians, especially those surrounding the mines. This is possible through corporate social responsibility programmes, he said. Deputy minister for Energy and Minerals Stephen Masele also says the negotiations involved reviewing the Mining Development Agreements (MDAs) seeking to reduce grace period from 15 to 10 years for all major gold investors. There is a need to further educate stakeholders and Tanzanians in general on implementation of 2010 Mining Act, because a lot of developments have taken place, but many people are still harbouring doubts, he said. The Chairman of Tanzania Chamber of Minerals and Energy (TCME), Mr Joseph Kahama, confirmed to The Citizen that the mining firms were implementing the new law, specifically on royalty payments and new tax formula. However, activists advocating transparency in the mining sector still hold the view that even the upped royalty is not enough yet. Executive Director of Fordia, Mr Bubelwa Kaiza, said that since the gold mining contracts were signed in 1990s when the prices of gold were between $250 and 300, now it was justifiable to increase royalty to at least five per cent because the prices are between five to six times the prices fetched then. The royalty is still small when you compare to the profit the gold mining companies are earning. There are African countries, such as Ghana and South Africa, which are charging royalties of more than five per cent, Mr Kaiza said. He also raised concern over the secrecy that surrounds the negotiations between the government and the mining firms representatives. However, the executive secretary of Tanzania Extractive Industries Transparency Initiative (TEITI), Mr Benedict Mushingwe, clarified that under the new mining law, all mining firms, not only the big three, should pay royalties based on the new rates. What has happened is thatafter negotiations, the big three gold miners have agreed to review their contracts so that they be in line with the new rates, said Mushingwe. He said the next financial year would see the government earn more from the mining. |