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Article

1 Oct 2009

Author:
Khadija Sharife, Centre for Civil Society (CCS), in Pambazuka News

Tanzania's pot of gold

For Tanzania, seated atop a giant, 45 million ounce pot of gold, economically valued at US$39 billion, the country, one of the ten poorest in the world – and Africa’s third largest gold producer – is bound to get poorer still if the government fails to capture a just proportion of royalties and taxes…But the liquidation of Tanzania’s finite resources has yet to really benefit the country…A leaked report of US auditing firm Alex Stewart Assayers (ASA), contracted by the Tanzanian government in 2003, revealed that four gold mining companies, including Barrick and AGA, deprived the government of US$132 million via tax avoidance, by overstating losses of US$502 million from 1999-2003. [refers to AngloGold Ashanti, Barrick Gold]