Tanzania mining revenues up 300%

This was revealed in the country's second EITI Report.

The government in Tanzania received more than US$300 million from the gas and mining sector in 2009/10, up almost three times from the reported revenues for the previous year.

This is according to Tanzania’s second EITI Report in Dar es Salaam today, 31 May 2012.

Referring to the recent application of a new royalty rate of 4 per cent on gross sales (up from 3 per cent), TEITI-Multi-Stakeholer Group Chairperson, Hon. Judge Mark Bomani (Rtd), said: 

“Transparency leads to the improvement of better systems of paying tax due to increased pressure from the general public.

“In light of progress made in the second report, we see the need to go beyond basic EITI requirements such as demanding transparency in grant licenses, contracts, and enforcement of compliance in licenses and contracts,” Hon. Judge Mark Bomani said.

Tanzania EITI (TEITI) is now inviting citizens throughout the country to local meetings about the findings of this EITI Report to encourage public debate of the figures.

Step forward from the first EITI Report

The report itself represents a step forward from the first report published one year ago, including gas revenue being covered for the first time.

Also, 24 oil, gas and mining companies have now disclosed their payments, more than double as many as in the previous report.

Being Africa’s fourth largest gold producer, Tanzania’s mining production accounted for 80 per cent of the report revenue, and in turn gold was 80 per cent of the mining production.

Significant unexplained discrepancies

This report is disaggregated on companies’ payments to the government. This enables Tanzanians to learn how much each companies has paid and they can see any discrepancies company by company.

When added together these discrepancies amount to 10 per cent, though the overall net discrepancy is just 1 per cent.

The discrepancies are mainly due to the failure of two companies not reporting: Tanzania Portland Cement Company (which represents 7 percent of the government’s revenues in the extractives sector) and Mineral Extractions Technologies Limited.

Further adding to the discrepancies, the Tanzanian Revenue Authority classified some of the import duties from Geita gold mine as deposits instead of payments.