COMPANY COMMENT: Tanzania’s changes in legislation put miners on edge
AngloGold CEO Srinivasan Venkatakrishnan seems keen to put as much air as possible between his company and Acacia
AngloGold Ashanti is facing a difficult situation in Tanzania, but it is nowhere near the problems fellow gold miner Acacia has around its operations in the East African country.Clearly pointing out that more than $1bn in taxes and royalties have flowed to the Tanzanian government since 1999 and that its mine development agreement for its Geita mine is still intact and not up for negotiation with the authorities, AngloGold CEO Srinivasan Venkatakrishnan seems keen to put as much air as possible between his company and Acacia. AngloGold started the open-cast mine at Geita in 1999 and has now moved underground, as well as constructing a power plant to supply the mine. The Geita mine will absorb $180m in 2017, with $75m invested so far. The mine has made about $7bn in revenue since it started. Venkatakrishnan said Geita was one of the major tax-paying entities in the country and this was a fact the government was aware of. That hasn’t stopped the government increasing royalties by two ...
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