Shanta to review cost base in light of new legislation, higher royalties
JOHANNESBURG (miningweekly.com) – East Africa-focused Shanta Gold is undertaking a business review of its operational and cost base in Tanzania, where it operates the New Luika mine, following the introduction of new legislation and higher royalty rates.
The Tanzanian Parliament earlier this month enacted the Natural Wealth and Resources Bill 2017 and the Natural Wealth and Resources Contracts Bill 2017, allowing the government to force mining companies to renegotiate contracts.
The Bills cover natural resource contracts and sovereignty and would amend existing laws to allow the government to renegotiate or dissolve contracts with multinational companies.
The country also amended its mining and tax laws, which will make it mandatory for the State to own at least 16% of mining projects, while also raising export royalties. The royalties for gold, copper, silver and platinum exports will increase to 6% from 4%, while uranium export royalties will increase from 5% to 6%.
Shanta on Wednesday said it expects its royalty rates to increase to 6% with its next gold shipment.
The gold producer expects to provide further details of the business review during the third quarter.
It, however, does not expect its gold production forecast for the year to be affected.
The New Luika mine produced 19 657 oz of gold in the second quarter of the year.
“The second quarter production result has far surpassed our projections while the underground mine ramped up. We have crossed the 40 000 oz of gold production mark for the year to date and are pleasingly on track to meet full year production guidance of 80 000 oz to 85 000 oz,” commented CEO Toby Bradbury.
He added that good progress was being made at the underground mine at New Luika, with first stope ore and commercial production declared on June 1.
Comments
Research Reports
Projects
Latest Multimedia
Latest News
Showroom
Rentech provides renewable energy products and services to the local and selected African markets. Supplying inverters, lithium and lead-acid...
VISIT SHOWROOM
South African leader in Steel -Racking, -Shelving, and -Mezzanine flooring. Universal has innovated an approach which encompasses conceptualising,...
VISIT SHOWROOM
Press Office
Announcements
What's On
Subscribe to improve your user experience...
Option 1 (equivalent of R125 a month):
Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format
Option 2 (equivalent of R375 a month):
All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors
including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.
Already a subscriber?
Forgotten your password?
Receive weekly copy of Creamer Media's Engineering News & Mining Weekly magazine (print copy for those in South Africa and e-magazine for those outside of South Africa)
➕
Recieve daily email newsletters
➕
Access to full search results
➕
Access archive of magazine back copies
➕
Access to Projects in Progress
➕
Access to ONE Research Report of your choice in PDF format
RESEARCH CHANNEL AFRICA
R4500 (equivalent of R375 a month)
SUBSCRIBEAll benefits from Option 1
➕
Access to Creamer Media's Research Channel Africa for ALL Research Reports on various industrial and mining sectors, in PDF format, including on:
Electricity
➕
Water
➕
Energy Transition
➕
Hydrogen
➕
Roads, Rail and Ports
➕
Coal
➕
Gold
➕
Platinum
➕
Battery Metals
➕
etc.
Receive all benefits from Option 1 or Option 2 delivered to numerous people at your company
➕
Multiple User names and Passwords for simultaneous log-ins
➕
Intranet integration access to all in your organisation
