BARRICK Gold said it shared the concerns of 64.9%-owned Acacia Mining regarding the safety of its employees amid increasing pressure by the Tanzanian government which said recently it was waging a war in the minerals sector.
However, the Canadian firm gave little other information in respect of negotiations it was having with the Tanzanian government regarding a 20-month dispute with Acacia.
Tanzania, led by President John Magufuli, alleged in two undisclosed government research papers last year that Acacia had unpaid tax liabilities totalling tens of billions of dollars (including penalties and interest) which it traced back nearly two decades. It subsequently seized mineral concentrate exports from Acacia’s Bulyanhulu and Buzwagi mines.
Acacia shut underground mining at Bulyanhulu amid economic distress. More recently, Acacia three employees have been charged with corrupt activities involving a company founded by Acacia and the Tanzanian government in order to manage property deals between them. The nature of the charges means the employees cannot be bailed.
Tanzania has also refused to negotiate with Acacia, preferring instead talks with Barrick. Acacia said recently it would “reach out” to the Tanzanian government and claimed that it had had no update on Barrick regarding progress of its negotiations despite the talks having started in October last year.
Said Barrick in its third quarter report, published overnight: “Discussions between the Government of Tanzania and Barrick concerning the proposed framework for Acacia Mining plc’s operations in Tanzania remain ongoing.
“Barrick is conducting these discussions in its capacity as the largest shareholder of Acacia, in an effort to reach a resolution that is agreeable to all parties.
“Barrick is not negotiating on behalf of Acacia. In order to allow the process to continue in an orderly manner and without an arbitrary deadline, Barrick has not provided a timetable for the completion of the discussions”.
It added that “… Barrick shares Acacia’s concerns about the increasing risks to the safety and security of its people, and continues to believe that a negotiated resolution is in the best interest of all parties”.
Bloomberg News reported recently, citing people familiar with the matter, that Barrick was considering buying Acacia’s mines once it has completed a nil-premium merger with Randgold Resources, led by CEO, Mark Bristow. Bristow told Miningmx in September that he was interested in Tanzania as an investment proposition, but added that the merger with Barrick had to be completed first.
