In contemporary society, with the development of science and technology and the improvement of mining technology, mineral exploitation has become one of the many counties and companies to make profits. Thus, the KM, which is a limited Australian company want to seek benefits on the rich mineral resources in Africa. I, as the business analyst of this Australian investment bank will advise the KM gold mining in Tanzania of Africa. I consider many factors，such as Tanzania is near the coastline which will convenient transportation and gold in there is very famous and so on. Then, I will illustrate the details about why I choose the Tanzania and the risk of it.
To begin with the situation of Tanzania, which is a country in East Africa. The economic in Tanzania mostly based on agriculture, which is occupied more than a half of GDP, provides 85% of exports. And Tanzania is the poorest economics of per capita income, but the GDP of it has 7% growth each year from 2000 to 2008 based on the gold production and tourism. However, it still accepted the fund of World Bank. The data given by CIA the world is the purchasing power parity is 64.71 billion in 2011, which is compared to the world, is 85th and the per capital about GDP is $1500 in 2011 that is 201th in the world. So, to build the gold mine company in Tanzania will give them more workplace and drive the economics growth of Tanzania, which help to appease the local people and government to accept KM Company that is better for reducing risks. Also, because so many poor people was work for agriculture so that we can though provide the stable workplace and wages to get the cheaper labor, which decrease the risks for loss. For example, the labor force is 24.06 million that is the 27st in the world. The macroeconomic of Tanzania is stability, for commercial operation of macroeconomic stability with low inflation that is 4.3％ in 2006, the stability of the exchange rate as well as profits, loan repayment, payment of...
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