Gold from Africa
With the creation of the EITI (Extractive Industries Transparency Initiative), an international initiative, particular attention is to be paid to the transparency of revenues of developing countries from the extraction of raw materials. Because corruption is often a problem in African states.
In Tanzania, Africa's fourth-largest gold-producing country, President John Pombe Magufuli (nicknamed "Bulldozer") is working to ensure that the country can benefit from its own wealth of raw materials and that corruption is combated. Currently, Magufuli has ordered the central bank to create gold reserves.
"We should start buying gold, the central bank must invest here. We have to have our reserves in dollars, but also our reserves in gold, because gold is money," the president explained. He also called on the government to regulate the mining sector. Allegedly, the fraud in the mining sector has cost Tanzania 84 billion US dollars over the past 19 years.
There thus seems to be a tendency towards greater transparency in Africa, which should also benefit mining companies. Caledonia Mining in crisis-ridden Zimbabwe is an example in the gold sector of a company that has been developing positively for years. Here, too, progress has been made following the change of power in the country, which could make Caledonia Mining even more interesting for international investors.
Caledonia Mining - https://www.commodity-tv.net/c/search_adv/?v=298787 - produces gold in its blanket mine and has been paying dividends since 2014. The company's stake is currently 49 percent - 51 percent is held by domestic investors - but is to be increased to 64 percent.
Cardinal Resources - https://www.commodity-tv.net/c/search_adv/?v=298772 - is also working on the Bolgatanga Project and the Subranum Project in Ghana. Recent drilling has returned up to 29.3 grams of gold per tonne of rock. Ghana is politically stable and has already attracted large and small corporations. Large parts of the country are still relatively unexplored.
Current company information and press releases from Caledonia Mining (https://www.resource-capital.ch/en/companies/caledonia-mining-corp.html).
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