Soaring Global Gold Prices Boosts Tanzania Gold Mining Sector

Tanzania’s Mining Audit Agency has said that soaring global gold prices have helped gold miners in the country to break even and start paying corporate tax.

Mr Zephaniah Henry TMAA financial analyst said that Geita Gold Mine and Resolute Gold have recently paid USD 2 million and USD 19.7million as corporate tax respectively after posting quarterly profits. Four mines under African Barrick Gold, ABG would also start to pay corporate tax following the announcement of its profits.

ABG is the largest gold miner in Tanzania it currently operates four mines which include Bulyanhulu, Buzwagi, North Mara and Tulawaka gold mines. ABG’S 2011 gold forecast is between 760000 troy ounces to 800000 troy ounces of gold and Tanzania is vying for the Africa’s third gold producer position.

TanzaniteOne also is paying corporate tax and has already USD 3 million. The price of gold in the world market recently reached USD 1,600 per ounce and is projected to even rise more.

Tanzania has become one of the fastest emerging gold producers in Africa, and is now the fourth largest gold producing country after South Africa and Ghana. Annual production of gold in 2010 was 44.6 tonnes. Gold is Tanzania’s main revenue earner but it has huge deposts of Uranium, copper, iron ore among others.