Monday, 30th October 2006 (2621 views)

The government of Tanzania is hoping to gain more control over the country's gold mining industry in order to profit from a boost in production.

Tanzania has, over recent years, managed to position itself as the third largest gold producer in Africa. Indeed World Bank figures show that mining is one of the African country's fastest growing industries.

But the gold mining sector in Tanzania is privately controlled, and companies do not pay corporate taxes until they have recovered their initial investments.

In fact mining only accounts for 3.2 per cent of Tanzania's gross domestic product, despite the fact that gold prices have doubled since the industry was liberalised, and there are now calls for more gold revenue to be directed to the treasury.

According to the Associated Press, Tanzania's president Jakaya Kikwete has requested that his country's mining laws and policies be reviewed by the Energy and Minerals Ministry in order for the government to exert more control over mining companies and earn more from gold mining activities.

 

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