HomeEast AfricaAfrican Barrick increases royalties in Tanzania

African Barrick increases royalties in Tanzania

Dar es Salaam, Tanzania — 16 May 2012 – African Barrick Gold has announced that it will pay the Tanzanian government an additional one percent in royalties, citing the current gold price environment.

Reuters reports that the company “’ which is a unit of the world’s largest gold producer Barrick Gold Corporation “’ said in a statement issued here that the new royalty would be in addition to its prevalent three percent rate stipulated in its existing mineral development agreements with the government.

Spot gold is currently trading at a four-and-a-half month low of US$1,531.13 an ounce on concerns over the European debt crisis. U.S. June gold futures, which often dictate spot gold, are at their lowest since late December.

Last month, African Barrick, which has four producing mines in northwest Tanzania, reported a 17%  fall in first-quarter output, butstuck to its full-year production forecast.

Shares in the company, which have fallen 8% since reporting first-quarter results, were down 4% at 316 pence on the London Stock Exchange this morning.

Source: Reuters. For more information, click here.