Information On Tanzania, My Favorite Country

Posted at 12:49 PM (CST) by & filed under General Editorial.

Dear CIGAs,

1. Today’s news on the cost of mining and infrastructure is in my opinion posturing for meetings between the Chamber of Mines and the Presidential Committee on Mining Revenue next week.

2. High costs can be a product of a company having sold the gold production of their mine forward 10 years in order to obtain non-recourse loans. The price of gold would then be delivered against those sales forward and used in the calculation of income in order to derive costs of mining according to International, Canadian and US Generally Accepted Accounting Principles (GAAP).

3. The infrastructure in Tanzania from Mwanza to Dar es Salaam is excellent.

4. A main high power electrical grid and delivery system exists in the area of Mwanza and can service multiple mines.

5. Gold can be shipped via air. This is most certainly true if you own multiple large aircraft yourself.

6. In my opinion mining costs in Tanzania are among the lowest in the world, especially if you have an open pit potential to finance your future underground operations.

Regards,
Jim