Ufipa-Kinondoni
JF-Expert Member
- Jan 3, 2012
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It is now close to two weeks since the Acacia Mining Shareholding Company’s team arrived in the country for talks with the government to resolve a huge tax dispute and sort out the gold concentrate export ban.
While negotiations have remained secret until now, sections of opinion were wondering if the team had already left. However, sources privy to the negotiating team affirmed that the Barrick Gold team was still in the country.
“The negotiations are progressing well with delegates from both sides moving to different places countrywide,” the sources noted.
The talks which started two weeks ago involve a team of experts from the government led by the minister for Justice and Constitutional Affairs, Prof Palamagamba Kabudi while the Barrick team is led by its Chief Executive Officer, Richard Williams.
The sources affirmed that discussions were progressing well, but did not mention where the talks were being conducted.
“The negotiations are meant to ease the way to setting a win- win situation for the mining industry that satisfies both parties,” the senior government official said.
He said that talks are conducted in different places as the teams go around collecting and verifying information presented at the negotiating table, or check company records with the reports of investigation teams.
Barrick Gold is the majority shareholder with 63.9 per cent equity interest in Acacia Mining that was hit by the mineral sand export ban.
The government banned exports of gold/copper concentrate and set up a team to determine the proper mineral contents and their values, compared with existing tax liabilities for the mining firm.
Two experts’ committees were set up, for the geological aspect of minerals content and the legal land financial ramifications of the gold concentrate business, which uncovered that mining companies had been under-declaring the value of the concentrates and potential earnings in exports.
Barrick Gold chairman John Thornton jetted into the country in June and discussed the matter with the president, whereupon it was agreed to hold fully fledged discussions on the now celebrated mining sector investment row.
The government accuses Acacia Mining of massive tax evasion amounting to US $190 billion (over 420 trillion/-) in a 17-year period by under-declaring export volumes and value of gold and copper concentrates from its Bulyanhulu and Buzwagi mines in the Lake Zone.
The Barrick Gold negotiation team leader told reporters at the State House in Dar es Salaam last month that he was looking for a win-win outcome of the talks.
Acacia Mining is the biggest gold mining firm in the country, and has said it will have to close down its flagship Bulyanhulu mine by September 30 if a government ban on concentrate exports, imposed in March, is not lifted.
Dr Magufuli threatened to shut down gold mines in the country if mining companies delay negotiations to resolve the dispute over billions of dollars in back taxes which the government says they owe.
Acacia Mining says it has been in full compliance with the country’s mining laws, and has paid all the relevant taxes.
Dr Magufuli's stance has rocked the country’s mining sector as a whole, and driven Acacia's shares down by more than 50 percent this year. Tanzania is Africa's fourth-largest gold producer.
While negotiations have remained secret until now, sections of opinion were wondering if the team had already left. However, sources privy to the negotiating team affirmed that the Barrick Gold team was still in the country.
“The negotiations are progressing well with delegates from both sides moving to different places countrywide,” the sources noted.
The talks which started two weeks ago involve a team of experts from the government led by the minister for Justice and Constitutional Affairs, Prof Palamagamba Kabudi while the Barrick team is led by its Chief Executive Officer, Richard Williams.
The sources affirmed that discussions were progressing well, but did not mention where the talks were being conducted.
“The negotiations are meant to ease the way to setting a win- win situation for the mining industry that satisfies both parties,” the senior government official said.
He said that talks are conducted in different places as the teams go around collecting and verifying information presented at the negotiating table, or check company records with the reports of investigation teams.
Barrick Gold is the majority shareholder with 63.9 per cent equity interest in Acacia Mining that was hit by the mineral sand export ban.
The government banned exports of gold/copper concentrate and set up a team to determine the proper mineral contents and their values, compared with existing tax liabilities for the mining firm.
Two experts’ committees were set up, for the geological aspect of minerals content and the legal land financial ramifications of the gold concentrate business, which uncovered that mining companies had been under-declaring the value of the concentrates and potential earnings in exports.
Barrick Gold chairman John Thornton jetted into the country in June and discussed the matter with the president, whereupon it was agreed to hold fully fledged discussions on the now celebrated mining sector investment row.
The government accuses Acacia Mining of massive tax evasion amounting to US $190 billion (over 420 trillion/-) in a 17-year period by under-declaring export volumes and value of gold and copper concentrates from its Bulyanhulu and Buzwagi mines in the Lake Zone.
The Barrick Gold negotiation team leader told reporters at the State House in Dar es Salaam last month that he was looking for a win-win outcome of the talks.
Acacia Mining is the biggest gold mining firm in the country, and has said it will have to close down its flagship Bulyanhulu mine by September 30 if a government ban on concentrate exports, imposed in March, is not lifted.
Dr Magufuli threatened to shut down gold mines in the country if mining companies delay negotiations to resolve the dispute over billions of dollars in back taxes which the government says they owe.
Acacia Mining says it has been in full compliance with the country’s mining laws, and has paid all the relevant taxes.
Dr Magufuli's stance has rocked the country’s mining sector as a whole, and driven Acacia's shares down by more than 50 percent this year. Tanzania is Africa's fourth-largest gold producer.
