Major foreign gold mining companies earned $6.967bn (Sh11.495 trillion) between 2009 and 2012, according to the current exchange rate of Sh1,650 against the US dollar, but paid the Tanzanian government corporation tax amounting to only $280million (Sh473.8billion) over that period.
Corporation tax is charged on gross profit of any company doing business in Tanzania under the current law, under which the Tanzania Revenue Authority (TRA) takes 30 percent of the posted profit.
According to data released by the Tanzania Mineral Auditing Agency (TMAA), Geita Gold Mine was the leading gold mine, which contributed about Sh299.4bn, followed by Resolute Tanzania Ltd which paid a handsome Sh97bn/-. Tulawaka gold mine, owned by African Barrick Gold, came third and paid Sh77.4bn/- during the same period. Although African Barrick Gold is the largest gold producer in the country, its contribution in corporation tax remains abysmal because the company continues to declare losses at its North Mara, Bulyanhulu and Buzwagi mines.
Barrick’s 2012 Annual ReportĀ  shows they still profited almost $60 million, and all their revenue is from Tanzania…
African Barrick Gold names new CEO
The company has named industry veteran Bradley A Gordon as its new CEO, replacing Greg Hawkins who has resigned. Tanzania-focused miner African Barrick Gold has pinned its turnaround hopes on a new chief executive, appointing industry veteran Bradley A Gordon to replace Greg Hawkins at the helm of the struggling group. The FTSE 250 company, whose poor performance meant it was under pressure even before a gold price rout began in April, said Gordon’s appointment would be effective immediately. Shares in African Barrick, which have lost around two-thirds percent of their value over the last 12 months, were trading down 1 percent at 154 pence, well below the company’s 575 pence listing price when it was spun-out of Barrick in 2010.