Gold Mining in Africa: Golden handcuffs
Tanzania's firebrand leader takes on its largest foreign investor.
“If they accept that they stole from us and seek forgiveness in front of God and the angels and all Tanzanians and enter into negotiations, we are ready to do business.”
As conciliatory gestures go, that one by John Magufuli, Tanzania's president, to Acacia Mining, the country's largest foreign investor, could hardly have been more fork-tongued.
Nonetheless, two days later John Thornton, head of Barrick Gold, Acacia's largest shareholder, met Mr Magufuli to start talks on ending a dispute that has halved Acacia's market value since the government in March imposed a ban on the export of gold- and copper-concentrates.
It is a mark of the seriousness of the stand-off that he is ready to negotiate on all points of contention between the two sides.
The context of the row is increasingly typical of Africa's mining industry.
The Tanzanian government is seeking more tax revenue from a foreign mining firm that was initially wooed into the country by generous tax concessions.
The state also wants to generate more value and jobs by smelting Acacia's concentrates domestically, rather than abroad.
That may seem reasonable, but Mr Magufuli's firebrand populism, as well as his unpredictability, have made it a particularly worrying test case for mining firms across the region.
In April Tanzania announced a new presidential committee to look into its gold exports.
In late May the committee accused Acacia of under-reporting its gold exports by a factor of ten, an accusation Mr Magufuli repeated.
Acacia says the charges of tax evasion are absurd.
1.foreign investor 国外投资商
例句:China's investment policy provide preferential treatment to foreign investor.
2.tax evasion 逃税
例句:He was arrested for tax evasion.
3.as well as 也；和...一样
例句:Whoever did him in removed a man who was brave as well as ruthless.
4.tax revenue 税收
例句:New taxes and higher taxes can lead to less tax revenue.