TORONTO, October 22, 2017—Barrick Gold Corporation (NYSE:ABX)(TSX:ABX) (“Barrick”) is set to wind up the activities of its Tanzanian based Gold company, Acacia PLC, in a move to implement the new framework with the Government of Tanzania.
The new framework unveils a new end to an era to Barrick Tanzania. The new development comes after a clarification from Barrick senior managers on what has transpired from the discussion between its Chairman, John Thornton and representatives from Tanzania’s reformist President Dr. John Joseph Magufuli.
In a press release issued at the end of this week to clarify details on what Barrick official termed as “the 21st century partnership with the Government of Tanzania,” the Toronto based world gold giant is set replace Acacia with a new company to manage its 3 Gold mining sites in the East Africa’s top growing economy.
“A new Tanzanian operating company will be created to manage Bulyanhulu, Buzwagi and North Mara, and all future operations in the country,” said a statement signed by Barrick’s Daniel Oh, Senior Vice President for Investor Engagement and Governance and Andy Lloyd.
Senior Vice President, Communications. Barrick owns 63.9 of Acacia (Tanzania) shares.
Acacia’s own website shows the firm carries both open pit and underground mining in the three mining areas that Barrick will now form a new managing firm to manage-Buzwagi, Bulyankulu and North Mara
“Currently, all of Acacia’s mining operations are in Tanzania, a country consistently ranked highly in Africa in terms of political stability with a history of democratically elected governments,” says a statement in Acacia’s own website.
The confirmation from Barrick senior leadership come hours after the government of Tanzania announced the new deal that will see the country enjoy more shares in the gold business with a plan for Barrick to research and create a local mineral concentration refinery plant.
Outlining how the new company will operate, Barrick officials added: “The principle of total transparency between partners will define how this company operates. For instance, the Government of Tanzania will participate in decisions related to operations, investment, planning, procurement, and marketing.”
Other key issues related to the company and other operational matters are:
· This company will maximize employment of Tanzanians-building local capacity at all levels of the business, from board membership to operations.
· It will also increase procurement of goods and services within Tanzania;
· Barrick has also committed to work with the Government of Tanzania to advance concepts for increasing in-country beneficiation of gold.
· Economic benefits from Bulyanhulu, Buzwagi, and North Mara would be distributed on a 50/50 basis between the new operating company and the Government of Tanzania.
· The Government’s share of economic benefits would be delivered in the form of royalties, taxes, and a 16 percent free carry interest in the Tanzanian operations.
· In support of the working group’s ongoing efforts to resolve outstanding tax claims, Acacia will make a payment of $300 million to the Government of Tanzania, on terms to be settled by the working group.
For full extract of Barrick statement see:http://www.barrick.com/investors/news/news-details/2017/Barrick-Comments-on-Proposed-Framework-for-Acacia-Mining-plc-Operations-in-Tanzania/default.aspx