Dual-listed Barrick Gold says discussions between the Government of Tanzania and Barrick are constructive. Progress has been made on the drafting of definitive agreements necessary for the implementation of the proposed framework.
In order to allow the process to continue in an orderly manner and without an arbitrary deadline, Barrick is not providing a timetable for the completion of the discussions at this time.
If Barrick is able to conclude discussions satisfactorily with the Government, the proposal will be provided to the Independent Committee of the Acacia Board of Directors for its consideration.
Barrick holds a 63.9% equity interest in Acacia, a publicly traded company listed on the London Stock Exchange that is operated independently of Barrick.
Acacia has published its third Payments to Governments report as part of its commitment to running its business transparently and demonstrating the economic benefits that its host countries and stakeholders receive from its operations.
This report includes all payments that Acacia and its subsidiaries make to Governments
and is in line with the current UK Regulations governing the reporting of payments made
by the extractive industry to Governments.
“Within the report we have broken out our overall contribution by country, mine and
by project which enables each of our local stakeholders to see the benefits that both
the regions around our operations receive as well as the central Government,” says Acacia CFO, Jaco Maritz,
“In 2017, our overall contribution increased by 10% to US$202 million primarily due to a
significant increase in net indirect taxes that are due to be refunded to the Company.
“Excluding the impact of the indirect taxes, we saw contributions to our host Governments
fall by 12%, primarily due to the ongoing dispute in Tanzania which meant that sales
of gold concentrate were significantly lower than the previous year and ultimately led to
the decision to put the Bulyanhulu mine on reduced operations in the fourth quarter which
meant that our overall production fell by 7% year on year.”
Over the past few years Acacia have also expanded its business beyond Tanzania, with active exploration programmes now taking place across Kenya, Burkina Faso and
Due to changes to the structure of its exploration projects in Burkina Faso and Mali,
Acacia is pleased to be able to show an element of our contribution to the countries for the first time.
“The majority of our contribution continues, however, to be made through joint ventures,
where our partner holds the relevant project licences in their name and as such we are
unable to report on their behalf.
“Whilst our contribution to the countries where we are exploring remains small, it is our hope that our interests in these projects will grow and progress over time, with resulting benefits to these countries in years to come,” concludes Maritz.