HomeEast AfricaAfrican Barrick may be sold

African Barrick may be sold

Bulyanhulu “’ African
Barrick’s biggest
mine in Tanzania
London, England — 17 August 2012 – Number one global gold miner Canadian-based Barrick Gold is considering selling its 74% stake in African Barrick Gold, led by CEO Greg Hawkins, following that company’s poor performance.  

Reporting this, Miningmx quotes the “Financial Times” as saying one of the potential suitors for the company, which has its assets in Tanzania, is Zijin Mining Company “’ a Chinese-owned copper and gold producer. Citing a person familiar with discussions, the newspaper added that Barrick Gold had been working with UBS to consider its options regarding African Barrick Gold. Shares in African Barrick Gold have fallen 30% since the firm was floated in 2010.

Another person familiar with the deal, who was also cited by the Financial Times, said, however, that the sale had been put on hold.

The sale of Barrick Gold’s stake in African Barrick Gold could trigger a complete takeover of the company, the newspaper pointed out.

New Barrick Gold CEO Jamie Sokalsky pledged that “returns will drive production; production will not drive returns” as he unveiled a review of the miner’s sprawling portfolio of assets, the Financial Times said.

Source: Miningmx. For more information, click here.