Barrick is meeting with government to discuss $190 billion bill for back taxes and penalties
International miners that flocked to Tanzania for its low taxes and friendly laws are running up against a populist president eager to gain a greater share of mining revenue.
Since his election two years ago, President John Magufuli, nicknamed “the bulldozer” for his forceful leadership style, has taken a series of actions he says are aimed at redistributing mining revenue to Tanzanians. The moves range from compelling miners to list their stakes in local stock exchanges and demanding higher taxes and royalties to threatening to tear up entire extraction contracts.
“I will not hesitate to close down all the mines if companies don’t pay what they owe us,” Mr. Magufuli told a cheering crowd in Tanzania’s north western mining region last week. “I have launched an economic war.” Continue Reading →