Politics! It's never a good thing!
HEY CAN IR maybe those upcoming taxes and royalties have some thing to do with the crappy share price and decline!? Stop feeding IKE and the longs false hope!
https://af.reuters.com/article/energyOilNews/idAFRISKTZ20111108?sp=true
ECONOMIC REFORM
Tanzania's mining sector slumped in two consecutive quarters this year due to uncertainty over government policies, a prolonged energy crisis and infrastructure constraints.
Africa's fourth-biggest gold producer, which passed a new mining policy in 2009 and subsequent legislation last year, plans to restructure the key sector.
The government said it was also negotiating with mining companies to pay more taxes from mining proceeds.
What to watch:
- Mining talks. Mining firms are worried about the tax reform plan. Africa's biggest gold miner AngloGold Ashanti has started paying 30 percent corporate tax to the government this year for its Geita mine, but companies are resistant to higher royalties.
- National debt. Government borrowing is set to rise as the country seeks funds for power and infrastructure projects. A debut $500 million eurobond is still on track as the country's national debt rose to $12.131 billion in the year to August from $12.112 billion at the end of July.
- Central bank moves. The central Bank of Tanzania (BOT) is taking measures to lower the inflation rate and halt the depreciation of the shilling. It remains to be seen if the measures will succeed in the import-dependent country. (Editing by Yara Bayoumy)