HomeEast AfricaBarrick Gold comments on potential impact of Tanzanian concentrate export ban

Barrick Gold comments on potential impact of Tanzanian concentrate export ban

Barrick Gold holds a 63.9% equity interest in Acacia Mining, a publicly traded company listed on the London Stock Exchange that is operated independently of Barrick Gold.

Financial results from Acacia Mining are consolidated for accounting purposes.

Cost and production information from Acacia Mining is presented on an attributable basis in Barrick Gold’s quarterly and annual mine statistics and annual guidance.

Barrick Gold’s current 2017 guidance assumes a contribution of 545 000 to 575 000 oz of gold from Acacia Mining, at a cost of sales of $860 to $910/oz, and all-in sustaining costs of $880 to $920/oz.

Acacia Mining operations impacted by the current ban on concentrate exports (Bulyanhulu and Buzwagi) account for approximately 6% of Barrick Gold’s 2017 gold production guidance.

In total, Acacia Mining accounts for approximately 10% of Barrick Gold’s 2017 gold production guidance.

Barrick Gold is offering Acacia Mining its full support as Acacia works to resolve this matter with the government of Tanzania.

Barrick Gold will evaluate any necessary adjustments to its full-year outlook should Acacia Mining determine a revision to its own 2017 guidance is required.

Acacia Mining notes the findings of the Tanzanian presidential committee’s investigation into the export of gold and copper concentrates announced a few days ago.

The committee has stated that Acacia Mining has not fully declared all of the minerals contained in the concentrate and the directive halting the export of metallic mineral concentrates remains in place.

The findings have presented to the president of Tanzania H.E. Dr. John P. Magufuli.

Acacia Mining has not yet seen a full copy of the report, which states that the value of minerals within the concentrates in the containers currently at the Dar es Salaam port is more than 10 times the declared amount.

The company is seeking a full copy of the report and further clarification.

Acacia Mining re-iterates that it fully declares everything of commercial value that it produces and pays all appropriate royalties and taxes on all of the payable minerals that it produces.

Feature image credit: Barrick Gold