LONDON (Reuters) – Upheaval in Tanzania, where the government has made huge tax demands and seized minerals, has triggered changes in neighboring Kenya, which should reassure the industry, said the CEO of Goldplat (GLDP.L), which operates a gold mine there.
Chief Executive Gerard Kisbey-Green said he was nevertheless seeking to diversify his portfolio to cover more African nations and to expand into platinum group metals as he strives to offset African risk.
This year, the mining industry has reeled from South Africa’s proposed new mining charter and changes in Tanzania, where the government is locked in a tax dispute with Barrick Gold (ABX.TO) subsidiary Acacia (ACAA.L).
Kisbey-Green said the impact of the Tanzanian actions in Kenya was “a positive contagion effect” as the mining ministry has requested the opportunity to inspect and has offered to assay each bar of bullion exported.
“It means our gold exports take a day longer, but I would rather that than have the government turn round and say we have been stealing their gold,” he said. The Kenyan Mining Ministry was not immediately available for comment. Set up around four years ago, the ministry’s aim is to develop the country’s mineral deposits, which include titanium, gold and coal.
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