New Barrick eyes several options to end Tanzania tax dispute: CEO

crocodile

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Apr 11, 2011
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Hivi Tanzania inauwezo wa kuwafanya wazungu wapumulie mashine.
1546518981473.png
 

figganigga

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Oct 17, 2010
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The new Barrick Gold Corp is considering options for its stake in Acacia Mining PLC including possible sale, as Barrick works to end a nearly two-year-long tax dispute in Tanzania that has effectively shuttered operations there, Chief Executive Officer Mark Bristow said on Wednesday.

The new Barrick, which began trading on Wednesday following its merger with Randgold Resources, holds a 64 percent stake in Acacia, which has not been able to export gold during the tax row.

Bristow expressed confidence that the conflict, which began when the Tanzanian government slapped Acacia with a $190 billion tax bill in March 2017, would be resolved.

“This has been a very complex and challenging situation where no one has won. It’s untenable and will be resolved,” said Bristow, who previously led Randgold.

Under an October 2017 framework pact that has yet to be implemented, Barrick Executive Chairman John Thornton and Tanzanian President John Magufuli agreed that Acacia would pay the government $300 million and 16 per cent ownership and split the economic benefits of its mines.

Barrick could buy out the rest of Acacia that it does not already own, or it could split up the company, among other options, Bristow said in a phone interview with Reuters.
 

Tangawizi

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Jun 25, 2009
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Does it mean they still have a future in Tanzania? That tone from the CEO sounds very reconciliatory
 

jingalao

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Oct 12, 2011
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New Barrick Gold Chief Looks to End Tanzania Dispute
Mark Bristow wants to resolve the tax and revenue-sharing fight; he says asset sales are possible, too


Barrick Gold Corp.’s chief executive said he is optimistic the company will soon resolve a dispute in Tanzania that has idled most of its mining operations in the country.
“We will find a solution,” CEO Mark Bristow said in an interview Wednesday. “This can’t continue, every stakeholder is hurting.”

Mr. Bristow was speaking on his first day as Barrick’s chief, after its $6 billion all-share merger with Randgold Resources Ltd. , which he served as CEO and helped found in 1995. Randgold’s gold production is focused in Africa, and Mr. Bristow—who was born in South Africa—has experience resolving tax and other disputes with African governments.

Barrick offered in 2017 to pay $300 million and other benefits to the government of Tanzania to settle tax and revenue-sharing disputes, but the two sides have been unable to strike a final agreement. Tanzania has restricted the company’s majority-owned subsidiary Acacia Mining PLC from exporting gold concentrate until the dispute is resolved.
Mr. Bristow declined to discuss details about the negotiations. Two senior Barrick executives met recently in Tanzania with government officials, and the discussion included an offer by the company to pay the $300 million in installments, a person familiar with the matter said.
Mr. Bristow said he expects to unveil in February a number of strategic changes that could include asset sales and new mining investments. He said the company is reviewing the possible sale of its 50% stake in Australia’s Kalgoorlie gold mine, which it jointly owns with Newmont Mining Corp. He added that Barrick also is considering the sale of its 100%-owned Hemlo gold mine in Canada and Lagunas Norte mine in Peru. No decision has been reached, he said.
Hemlo is Barrick’s only Canadian mine, and Mr. Bristow said the company “needs more assets in Canada.” He said the company could reinvest in the Hemlo mine to make it more efficient or acquire other Canadian properties.
Barrick’s head office will change significantly under Mr. Bristow, who favors decentralized leadership. At Randgold, only seven people were employed at its head office in the English Channel island of Jersey. He said he plans to shrink Barrick’s head-office staff to about 60 people, from nearly 200 last year.
Write to Jacquie McNish at Jacquie.McNish@wsj.com
Appeared in the January 3, 2019, print edition as 'Barrick CEO Seeks Tanzania Resolution.

CC : tindo

Chanzo: New Barrick Gold Chief Looks to End Tanzania Dispute
 
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