African Mining: Tanzania

THIS POST WAS ORIGINALLY PUBLISHED APRIL 30, 2008

African Mining: Tanzania

Location:   Eastern Africa, bordering the Indian Ocean,  between Kenya & Mozambique

Area:   945,087 km2

Border countries:   Burundi, Congo, Kenya, Malawi, Mozambique, Rwanda, Uganda, Zambia

Population:   40.2 M

Capital:   Dodoma (legislative capital), Dar es Salaam

Time Difference:   GMT +2 (Jakarta -4)

President:   Jakata Kikwete

Major infectious diseases: degree of risk: very high;

food or waterborne diseases: bacterial diarrhea, hepatitis A, and typhoid fever

Vectorborne diseases :             malaria and plague

Water contact disease:             schistosomiasis

 Natural resources:   tin, phosphates, iron ore, coal, diamonds, gemstones, gold, natural gas, nickel

Official languages:  Swahili, English

Industries:  agricultural processing (sugar, beer, cigarettes, sisal twine);

  diamond, gold, and iron mining, salt, soda ash; cement,

  oil refining, shoes, apparel, wood products, fertilizer

Export Commodities:   gold, coffee, cashews nuts, manufacturers, cotton

Export Partners:   China, India, Netherlands, Japan, UAE, Germany

Import Commodities:   consumer goods, machinery & transportation equipment,

  industrial raw materials

Import Partners:   South Africa, China, Kenya, India, UAE, Zambia

Exchange Rate:   1 dollar (USD) = 1,255 Tanzanian shillings (TZS)

 

Scope:Mining makes up about 50% of country’s annual earning. Large scale mining employs about 8,400 people;   small scale (artisan) 20,000.

Investment climate: 

• A globally competitive tax and regulatory regime for mining investors

 • Accelerated and simplified handling of investment proposals

 • Guaranteed access to foreign exchange for repatriation of profits

 • Investors are protected against nationalization

 • Property guarantees under Multilateral investment Guarantee Agency

Mining Tax:3% royalty to government; 30% corporate tax after the mining company becomes profitable. Offset   equipment and machinery costs against earnings

Major mining companies:   AngloGold Ashanti, De Beers, RandGold, Barrick Gold, Resolute Mining

Minerals:

 

Coal: substantial resources of low sulphur coal, but currently on small scale exploitation. Major coal deposits are located in the Lake Nyasa and Karoo Super Group. 

 

Iron Ore: several settings of deposits — North of Ruhuhu River.

Base Metals: most notable — copper and lead. Zinc — never produced in country.