sharing in governance of extractive industries
First published by Johnny West on openoil.net
Tanzania’s decision to impose a ban on concentrate exports from its mining industry has gained wide coverage among industry watchers. The question is: what does the government hope to achieve with it, and what will companies’ reaction be to it?
In this piece, we explore the possibility that the ban particularly targets Acacia Mining’s gold production in Tanzania and that the objective is to pursue re-negotiation to increase revenues to government from Acacia’s three large gold mines, which generated turnover of over a billion dollars in 2016 but have yet to pay any corporate income tax.
We further consider the impact of the ban on Acacia, and on government revenues. Financial analysis suggests the following preliminary conclusions:
Each of these points is dealt with in detail in the full blog on openoil.net
OpenOil’s Excel model on the Bulyanhulu mine is available to view the workings of the conclusions in this post.
Add a Comment