Mining group African Barrick Gold has increased its royalty payment to the Tanzanian government by an additional voluntary one per cent on top of the three per cent rate stipulated in the firm's mineral development agreement.
The increase is the result of the current gold price as well as an indication of the company's commitment to Tanzania.
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"We believe that the mining industry has a well-founded regulatory framework in Tanzania which the government has fully respected, and this initiative is reflective of that and will further strengthen our operational platform over the long term."
The firm said that the stability provided to the company by its relationship with the Tanzanian government has been instrumental in the development of the business.
The company was keen to emphasise its financial contributions to the surrounding area of its Tanzanian sites which are set to bring a number of benefits to these communities.
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