AngloGold Ashanti (AGA) has continued to be a catalyst for positive results in Tanzania and the epitome of success in the extractives sector. Its investment and innovation has translated into sustainable social development and benefits for the nation.
The company, has been operating Geita Gold Mining Limited (GGML) for more than two decades since its official inception in 2000, undertaking its activities with high efficiency, producing gold products as well as paying taxes timely and at the required rates.
These efforts are intended to accelerate the implementation of Tanzania’s development agenda.Tanzania’s Development Vision 2025 has set a target of ensuring that the mining sector contributes at least 10 percent of the GDP by 2025.
According to the Ministry of Minerals, gold accounts for 86 percent of all minerals produced in the country and GGML leads the way in production of these minerals in large quantities almost every year.
Since inception till the end of 2020, GGML has borne and paid US$ 1.7 billion to the Government through various tax returns, royalties and levies.This sum includes the royalties paid (US$454 million), taxes levied on workers’ wages (US$205 mil-lion), income tax (US$668 million), mining license fees (US$12 million), import duties (US$125 million) and Geita Councils service levies (US$14 million) amongst others.
This reflects directly on the indus-try’s contribution to the country’s GDP which increased from 3.4 percent in 2015 to 5.2 percent in 2019 while the goals of Tanzania’s Development Vision is to reach 10 percent by 2025.Acting Chief Executive Officer of AngloGold Ashanti, Ms. Christine Ramon says, “In today’s world it is not easy to run a mining company, but we ensure sustainable investment, implementation of develop-ment activities as well as payment of taxes to the Government of Tanzania.”She added that, GGML is proud to be the best taxpayer in the Tanzania mining industry.
Following the conclusion of the Tanzania Mineral and Mining Investment Conference at the Julius Nyerere International Convention Centre in Dar es Salaam earlier this year, GGML’s Vice President responsible for sustainable projects, Simon Shayo elaborated why the mine had won the award for being the best taxpayer in the mining sector for the financial year 2019/20.
“GGML has won this award because it is a company that focuses on responsible mining as well as supporting the communities surrounding our business. One of our core values is to ensure that communities surrounding our operations are better off for AngloGold Ashanti having been there.”
“The transparency and accountability of our company in enforcing laws and guidelines from the Government is what has propelled us to the front line of paying various taxes and levies, serving as a reliable development partner to the Government and people of Tanzania,” says Shayo.
Qn: What projection does this accolade give to GGML’s production in seasons ahead?
Shayo: The award provide impetus for continued productivity in the coming seasons because it motivates us to maintain our record.
Qn: Does GGML consider Tanzania’s Development Vision in its operations?
Shayo: Indeed, GGML embodies the country’s Development Vision. The fact that the Company consistently contributes a sizeable amount to government revenue collection targets means that we are also contributing to the efforts of achieving a middleincome economy and ensuring that by 2025 the contribution of the mining sector to the GDP reaches 10 percent.
Qn: How does GGML build trust with the Government and Tanzanians through its overall contribution?
Shayo: GGML is doing everything possible to ensure that everything we do is adhering to the rule of law. Transparency and accountability are values we hold dear.
When you arrive at our Mine, you will notice that we have government agencies present including TRA and Resident Mining Officers who have their offices close by with the intention of inspecting and monitoring the transparency of our operations. Even when we export gold, government officials are present to document various levies and taxes. Everything is done transparently.