Tanzania seen raising royalties on gold by year

Tanzania plans to raise royalty payments on exports of gold bcrushing plant manufactuered in pakistany the end of this year as it seeks to restructure the mining sector, Minerals and Energy Minister William Ngeleja said on Wednesday.

Africa's fourth-largest gold producer has been undertaking major reforms of its mining sector following growing criticism over the industry's relatively minor contribution to economic growth. Tanzania's annual gold exports have tripled to $1.5 billion in the past five years as gold prices have risen, but government revenues have remained at around $100 million a year. "We have already basically reached agreement with mining companies on raising royalty payments ... we expect migration to the new rates to start this year in 2011," Ngeleja told a news conference at a mining and energy conference in the northern Tanzanian town of Arusha. "The Ministry of Finance and the Tanzania Revenue Authority (TRA) are finalising the procedures for that." Tanzania initially planned to...