African Miners: Between Mix Of Red Carpet And Red Card

According to Reuters Agency, as executives of the biggest firms gathered for this week’s annual industry conference in Cape Town, the continent’s politicians were to be seen quaffing Shiraz in the shadow of Table Mountain to drum up inward investment. At least one major state is taking a different approach, though. The usual relationship between miner and mined is typified by Ghanaian President and Indaba attendee Nana Akufo-Addo. Last month, he threw a $259 million tax break at AngloGold Ashanti to get it to redevelop its massive Obuasi bullion mine. In return, he hopes for $2.2 billion in duties and 2,500 jobs over the next two decades. At the other end of the spectrum is Tanzanian President John Magufuli. Two months ago the East African state started to review off-shore natural gas contracts dating back two decades lest they contain provisions harmful to the state, Bloomberg reported on Feb. 6. Moving the goal posts could hit Royal Dutch Shell, and also Norwegian oil group Equinor. The latter pointedly said in response to Tanzania’s action that it hoped the government would understand the stable conditions required to finance a 30-year project. It’s pretty clear the socialist Magufuli does not. The president has transformed Africa’s fourth-biggest gold producer from investor darling to pariah: it is now the third-riskiest jurisdiction for miners, having been classed as 73rd in 2016, according to Verisk Maplecroft, a consultant. Only Zimbabwe and Venezuela fare worse. Magufuli has also crippled London-listed Acacia Mining, Tanzania’s largest private employer, with a fantastical $190 billion back-tax bill.
 

  • Great Response! 1
  • Upvote 1

Share this post


Link to post
Share on other sites

Last day It was a few good news about Africa, gold and diamonds, so my conclusion is  that after years in doldrums, gold miners shine again or will shine again....

  • Like 1

Share this post


Link to post
Share on other sites

Gold is indeed a precious metal, especially for those African nations who are lucky enough to own it. And, many of them have it, but on the end everything can put in two words: 

 

image.png.8ccf22dc0767774dc56c7416cf3d3e04.png

  • Like 1

Share this post


Link to post
Share on other sites

Yep.  Miner in Africa are sad story about a poor work condition and slavery... They are working for crumbs on the table...  

"February 2, 2018, all 955 miners rescued from the Beatrix gold mine in Welkom town, South Africa, after 2 days underground ".

I doubt that it is better today...

  • Like 2

Share this post


Link to post
Share on other sites

There are a lot of illegal gold mines throughout Africa, and link between governments, local officials and gangs are stronger than law: "one ounce of gold for me, the other for them" :)

  • Like 1

Share this post


Link to post
Share on other sites
Sign in to follow this  
Followers 0