Tanzania’s mining industry shows great potential but will need some time to reconcile with recent government regulations before new projects in the sector can be launched, mining industry expert and former CEO of Barkerville Gold Mines Ltd, Dr. Elena Clarici has said.
Dr. Clarici, a social entrepreneur, and seasoned investment analyst, was speaking at a London mining summit this week where she gave an update on Tanzania’s new mining legislation.
The summit comes at a time when Barrick Gold Corp – a Canada-based mining firm with operations in Tanzania – is set to start discussions with Tanzania’s government next week on a precious-metal export ban and other issues impacting its Acacia Mining company. This comes after Tanzania handed Acacia a $190 billion tax bill last week for back-taxes and penalties, which Acacia disputes.
According to Dr. Clarici, Tanzania’s explorations sector needs to be closely monitored to ensure its potential is not compromised.
Tanzania’s gold production had increased by more than 700% in the past 25 years, thanks in part to policy reforms in the country’s mining sector.
The country’s President John Magufuli has been described as a polarizing figure for the industry, given his austerity measures and his ongoing clampdown on corruption and waste in the East African country.
Tanzania was the second largest gold producer in Africa in 2016, after Ghana.
Gold accounted for $1.3 billion of the total value of Tanzania’s exports in 2015, representing more than 90 percent of the country’s mineral exports. The country sells its precious metal mainly to South Africa, India and Switzerland.
“Tanzania is not the best place to launch new projects now, but with patience, it will improve,” Dr. Clarici said.
At the summit, it emerged that investors interested in Africa’s mining industry are looking for fiscal stability.