The United Republic of Tanzania is a country in eastern Africa and has an estimated population of 55.57 million people. The country boasts a great diversity of geology, hosting a rich variety of minerals, with gold by far being the most valuable mining segment, accounting for 90% of the total value of mineral exports. Overall the mining sector accounts for US$1.7 bn or 4% of the US$47 bn economy.
Shanta Gold is committed to Tanzania, with much of the country remaining under-explored. Since starting production in 2013, Shanta has contributed to the Tanzanian government totalling US$67 million and employed an large number of talented local employees. Shanta has an excellent track record of positive engagement with national and local governments as well as local communities within the country. The Company’s Head of Government Relations and Country Affairs - Calvin Mlingi, a Tanzanian, is a trained lawyer who supports and strengthens the Company’s relations with local and national government.
A new Finance Act was approved by the Tanzanian Parliament in June 2017 and new legislative Bills affecting the mining industry were enacted as Laws in early July 2017. As a result of the legislative changes, royalties have increased from 4% to 6% and in addition, a 1% clearing fee on the value of all minerals exported from the country became effective from early July 2017. These changes increase Shanta's costs by approximately US$3 million per annum (US$39 /oz). The Company's announced target annual costs savings will more than offset the impact of these higher costs.