Twiga Minerals delivers 100bn/- in first dividend

14Oct 2020
Henry Mwangonde
Dar es Salaam
The Guardian
Twiga Minerals delivers 100bn/- in first dividend

PRESIDENT John Magufuli yesterday received 101bn/- in dividends from Twiga Minerals Corporation and State Mining Company (Stamico).

State Mining Corporation Ltd board chairman Maj Gen (rtd) Michael Isamuhyo pictured in Dar es Salaam yesterday presenting to President John Magufuli a dummy cheque for 1.1bn/- in dividend to the government, as Finance and Planning minister Dr Philip Mpango (2nd-R) and Treasury registrar Athumani Mbuttuka (3rd-R) look on. Photo: State House

Twiga Minerals, born of an accord between Barrick Gold, a Canadian firm and the government, which holds a 16-percent stake in the company, handed $40 million (100bn/-) one year after it was launched.

Inn his remarks, the president said what was received yesterday was a result of the reforms that his government carried out the mining sector.

"Tanzania is very reach and this is why I have repeatedly said this, that we only needed to intensify regulations on how we export," he declared.

Stamico handed a 1.1bn/- dividend, the second year it has paid out dividends, after the fifth phase government issued an ultimatum to heads of corporations which always operate on losses.

Dr Magufuli used the opportunity to invite investors to Tanzania saying it was the best place for investments in the region.

He said the reforms his government conducted had an impact on ensuring that the nation was benefiting from its natural resources, taking time to elaborate on benefits earned so far on account of the reforms.

Earlier, mining minister Dotto Biteko said artisanal miners sold 337.482 kilogrammes of gold worth 22.5bn/- with the government receiving 1.2bn/- in royalties in 2016 but with the reforms, in 2019 artisanal miners sold 4,656.29 kilogrammes of gold worth 375.5bn/- with the government receiving 22.5bn/- in royalties.

On the same note, large-scale miners sold 17,587 kilogrammes of gold in 2016 worth 1.4trn/- in which the government received 53.18bn/- but with the changes, in 2019 large scale miners sold 21,652.77 kilogrammes of gold worth 2.2trn/- and the government received 130bn/- in royalties, he stated.

On May 26, the government received 250bn/- from Barrick Gold, the first tranche of $300m agreed as a goodwill gesture to end a tax dispute.

Barrick took over operations of its subsidiary Acacia Mining after the government in 2017 accused it of understating gold exports, and finding it difficult to conduct meaningful negotiations with the subsidiary.

Last year, Barrick and the government settled for the payment of the $300m and wrap up the tax issue.

The jointly owned Twiga Minerals Corporation was formed, with the 16 per cent stake obtained as a free-carried equity, where the new corporate entity replaced Acacia Mining.

The government similarly rescinded its ban on exporting mineral concentrates operating since 2017 in the wake of a probe report unearthing massive tax evasion.