ABG injects 1trn/- in local economy

African Barrick Gold (ABG) injected in the country’s economy 700 million US dollars (over 1trn/-) in 2012, an increase from 2011’s 600 million US dollars (over 900bn/-).
 
ABG, the country’s largest gold producer with three operational gold mines—Bulyanhulu, North Mara and Buzwagi—computes its contributions in terms of taxes and levies to the government, employee salaries, payments to suppliers and contractors as well as expenditure in corporate social responsibilities.
 
The mining giant increased tax payment to the government in 2012, paying 150 million US dollars (over 230bn/-), up from 135 million US dollars (about 210bn/-) in 2011.
 
“Our direct contribution to the domestic economy includes the value we add through paying employees, the government, suppliers, contractors and our host communities,” ABG Vice-President for Corporate Affairs Deo Mwanyika told Editors in Dar es Salaam over the weekend.
 
Mr Mwanyika said the company’s true contribution to the economy was far greater than perceived, if the broader effects of the company’s presence were to be considered.
 
The effects include the indirect impacts of people spending their wages, government tax and royalty revenues as well as developed infrastructure for the communities.
 
Total payments to suppliers, contractors and communities amounted to 860 million US dollars in 2012, higher the previous year’s 732 million US dollars. Mr Mwanyika said Tanzanian companies received about 60 per cent of all the 800bn/- paid to suppliers last year compared to about 620bn/- in 2011.
 
ABG, which is the largest foreign direct investor in Tanzania, has since commencing operations in the country invested 2.25 billion US dollars. The company plans to invest a further 445 million US dollars in 2013 to sustain and expand its asset base.
Source: The Daily News, reported from Dar es Salaam
 
 
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