Kahama DC wants suppliers at Bulyanhulu mine to pay taxes

16Oct 2021
By Guardian Reporter
The Guardian
Kahama DC wants suppliers at Bulyanhulu mine to pay taxes

SUPPLIERS of goods and services to Twiga Minerals Corporation at Bulynhulu gold mine in Kahama district should open offices in the district and pay all taxes to benefit residents who host the mine.

Deputy Minister for Minerals, Prof Shukrani Manya (3rd R) listening from Barrick Africa President and CEO, Mark Bristow (L) shortly after launching a modern laboratory to analyze gold, copper and silver from the soil using X-rays at Bulyanhulu Gold Mine in Kahama district of Shinyanga region last week. Others are Commissioner of Minerals, Dr Abdulrahman Mwanga (2nd L) and Kahama District Commissioner Festo Kiswaga (2nd R). Photo: John Badi.

Kahama District Commissioner, Festo Kiswaga said last week during a meeting with Barrick Gold’s President and CEO, Mark Bristow that many companies supplying goods and services to the mine have no office in Kahama and pay their taxes in other jurisdictions.

“I urge all of your partners who you work with to also open offices and pay taxes in Kahama so that the people of this district benefit from hosting this mine,” Kiswaga said while commending Barrick for implementing most of the issues agreed with the government in 2019.

“You are doing a good job as a company and we appreciate it, you are employing our people, paying taxes and also investing in infrastructure through your corporate social responsibility funding,” he said while requesting Barrick to also allow artisanal miners use its modern gold sampling laboratory.

In his presentation on the company’s third quarter results, Bristow said since 2019, Barrick has invested over U$1.2 billion of which 48 percent has been payment of goods and services to local suppliers; 39 percent paid in taxes, royalty and other levies while 10 percent has been payment to staff salaries.

“We have a total of 4,133employees of which 4,021 are locals and 112 expatriates which means that 97 percent of our employees are Tanzanian of which 40 percent are hired from the community surrounding the mine,” the Barrick Africa chief who is also Twiga Minerals Corporation Board Chairman stated.

He said the company has also decided to invest in the Australian made laboratory has capacity to test 1,000 samples of half a kilogram mineral sand per day with a single sample analysis taking not more than two minutes, to improve efficiency.

“This new laboratory delivers faster, safer and more accurate analysis of gold, silver and complementary elements by non destructive measurement of larger and more representative samples in as little as two minutes,” Bristow noted.

Speaking at the same meeting, Deputy Minister for Minerals, Professor Shukuru Manya commended Barrick Africa’s management for adhering to the agreement signed with the state saying it’s good for both parties. “The issue of exporting copper concentrate has been resolved and we have opened a new chapter,” Prof Manya said while noting that Twiga which replaced Acacia Mining Plc has 16 percent state shares.

He commended Barrick for investing in the U$3.7 million photon assay laboratory saying it shows commitment by the company to continue investing in the country. “This new laboratory will also help enhance transparency in your operations,” Prof Manya who commissioned the laboratory added.

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