Tanzania's gold potential now at 1,000m ounces

Monday, 07 April 2008

By Daniel Said

DAR ES SALAAM, TANZANIA – Estimates are putting Tanzania’s gold potential at
1,000 million ounces which are open for exploration activities, the Tanzania Chamber
of Minerals and Energy said last week.

However, despite the stated wealth, Tanzania is currently exploiting only 4% of the
potential.

The chamber has therefore advocated against further taxation of investors arguing
that it will reduce the country’s global competitiveness in attracting mining
investors.

Instead, the chamber has advised the government to develop roads, improve railways,
ports and provide reliable electricity to support the growing mining sector.

Last week the chamber said in a statement that while the foreign shareholders had
not reaped any dividends from gold mining operations from 1997 when the first mine
was opened to 2005, Tanzania has already received a total of $ 255,526,893 in
statutory taxes and royalties from large mining operators.

The chamber revealed that between 1997 and 2005, mining companies which are members
of the chamber produced gold worth $ 2.54 billion and $74.7million in royalty.

“The future holds bright prospects for the country, but not through further
taxation because that will reduce Tanzania’s global competitiveness in attracting
investments in mining,” said the statement in part.