Latest News:  


Gold price fall may cause layoffs in Tanzania: official


08:12, July 30, 2013

ARUSHA, Tanzania, July 29 (Xinhua) -- Over 1,200 mine workers working in Tanzania's two giant gold mines are likely to lose their jobs, following the drastic plummeting of gold prices on the world market, a senior official said on Monday.

"We are very concerned with the gold price trend in the global market," Ally Samaje, acting Commissioner for Minerals in the ministry of Energy and Minerals, said in Arusha soon after presenting a paper on Tanzania's mining challenges at a forum that involved different mining stakeholders from across the African continent.

He cited two mines which are in danger of suspending operations- - North Mara and Buzwagi, both of which are operated by the African Barrick Gold (ABG).

ABG, the biggest investor in Tanzania's mining sector, posted total revenues of 2.32 billion U.S. dollars in 2011 and 2012. Around 91 percent of ABG's total workforce of 5,649 employees comprises Tanzanian nationals, with the company aiming to further reduce its expatriate labor in 2013.

"ABG has already expressed concerns to us on the falling price trend in the world market. But, they are yet to decide whether to continue or suspend mining operations in those two sites," Samaje said.

If the multinational company would opt to suspend business, it is estimated that more than 1,200 workers will be forced to go home for unpaid leave.

"This will have a very negative impact on the country's economy and the well-being of employees working on the two mines," Samaje said. "On our side, we'll lose hefty amount of taxes from the two mines, in terms of royalty and other forms of taxes. Social service providers will also be affected if the company would suspend the operations in the two sites."

"But, we still hope that is not going to happen... and Barrick Gold also are still watching the price trend," he said, attributing the drastic fall of gold price to low demand of the precious metal in the global market.

In 2008, gold was one of the minerals which were not affected by the global economic crisis. Mining contributes 3.5 percent to the GDP of the east African nation and is projected to reach 10 percent by 2025.

We Recommend:

Dachshunds attend annual Wiener Dog Racing

Collective gay wedding held in Mexico City

Best photos of week (July 8 - July 14)

'Temple Collection' on display in India

Bastille Day military parade held in Paris

Indian new recruits attend passiong out parade

Anti-government protest held in Thailand

Mexico's Popocatepetl Volcano spews ashes

Egypt unrest continues in Cairo

Email|Print|Comments(Editor:LiangJun、Yao Chun)

Leave your comment0 comments

  1. Name


Selections for you

  1. APF officers and men in actual-combat drill

  2. Soldiers leave for "Peace Mission 2013" drills

  3. DPRK marks 60th anniv. of armistice

  4. 37th anniversary of Tangshan earthquake

  5. Heat waves scorch many parts of China

  6. The hard life of a single father

  7. China beats Australia 4-3 in East Asian Cup

  8. Celebrity breakups

  9. Alibaba, e-concierge, soon at your service

  10. Cheap drug expected after GSK case

Most Popular


  1. China's economy will continue to prosper
  2. Western countries face dilemma on Syrian conflict
  3. Reform, not incentives, to drive expansion
  4. Lenovo reigns as king of the hill
  5. Small exporters need more help to pass tough times
  6. Debate on internationalizing education
  7. Bo Xilai indicted for corruption
  8. China rules out provisional economic stimulus plan
  9. Removal of deposit rate ceiling not imminent
  10. Feeble Japanese-Philippine 'axis' doomed

What’s happening in China

Singer in spotlight after blog post

  1. Bee reserve stings planned tiger reserve
  2. China seizes 22,320 fake guns bound for Africa
  3. 3 killed, 5 injured in S China knife attack
  4. Marriage with expats in sickness and in stealth
  5. Onetime heaviest woman loses 55 kg in 80 days