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Acacia Mining contribution account for 1.5 pc of total economy

ACACIA Mining, injected 1.61tri/- into the national economy last year slightly down from 1.64tri/- of the previous year, a new study on the miner's contribution to the economy reveals.

The study, by Ernst and Young (EY) shows that the contribution from Acacia’s three mines – North Mara, Bulyanhulu and Buzwagi – represented around 1.5 per cent of the total gross domestic product (GDP) which rose to 50.5tri/- last year at 2007 constant prices in absolute terms, according to National Bureau of Statistics.

The 2017 contribution is comprised of 453bn/- (US$200 million) by the businesses, an indirect contribution via suppliers of 689bn/- (US$304 million) and induced contributions of 471bn/- (US$208 million).

In total, including direct, indirect, and induced taxes paid by Acacia, its employees, suppliers, and other affected businesses, Acacia’s total tax contribution in 2017 was an estimated 421bn/- (US$186 million), the study shows.

The overall full employment multiplier (including indirect and induced economic activity) is 17, which can be interpreted as, for each direct Acacia employee, 16 additional wage jobs and self-proprietors are supported in the broader Tanzanian economy.

The wage employment multiplier is 12, which can be interpreted as, for each direct Acacia employee, 11 additional wage jobs are supported in the broader Tanzanian economy.

“This report further reiterates our commitment to continue conducting our business in a way that benefits the country and host communities in which we operate,” Asa Mwaipopo, Managing Director, Tanzania, said.

“It is encouraging to see that our contribution stretches from our zone of influence to a national level as we continue to support efforts towards Tanzania’s socio-economic growth and the attainment of the Country’s Development Vision 2025.”

Acacia mining controlling shareholders, the Canadian firm, Barrick Gold is negotiating with the government on disputes which arose from the miner's operations in Tanzania.

The mining firm said in a statement last month that discussions between the government and Barrick were constructive, with progress being made on the drafting of definitive agreements necessary for the implementation of a proposed operations framework.

Barrick, which owns 63.9 per cent of Acacia, struck a framework deal in October with the government that was supposed to resolve the tax dispute.

It would see Acacia pay $300 million to the government, hand over a 16 per cent stake in its mines and split “economic benefits” from operations.

THE Ministry of Livestock and Fisheries ...

Author: DAILY NEWS Reporter

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