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
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