The North Mara underground and open pit has produced 2 million oz. of gold since it opened in 2002. (Image: Acacia Mining)
TANZANIA – The long running tax dispute between Barrick Gold subsidiary Acacia Mining and the government of Tanzania continues. The sides are talking and the discussions are constructive, said Barrick. But the company declined to guess at when the discussions might conclude.
The world’s largest gold producer Barrick, headquartered in Toronto, holds a 63.9% interest in Acacia.
In March 2017 the Tanzanian government banned the export of gold and copper concentrates. The move came along with allegations that Acacia had falsified the amounts of gold in concentrates and demands for additional tax payments in the amount of US$190 billion.
Last October Barrick and Tanzania reached a deal that includes a US$300 million payment to the government as a gesture of good faith. A new operating company is to be created to run the three mines – Bulyanhulu, Buzwagi and North Mara – that Acacia owns. The government will receive half the mining revenues as royalties, taxes, and a 16% free carry interest in the operating company.
When Barrick and the Tanzanian government successfully work out the details, the arrangement must be approved by the Acacia board of directors.
Find more information at www.Barrick.com or www.AcaciaMining.com.