HomeEast AfricaNew Tanzanian mining law won't affect Barrick

New Tanzanian mining law won’t affect Barrick

Barrick Gold “’
not worried by new
Tanzanian mining law
London, England — MININGREVIEW.COM — 28 April 2010 – African Barrick Gold Plc “’ the mining company that sold shares in London for the first time last month “’ says it does not expect the new mining law in Tanzania to affect its mines in the country.

In a statement issued here the company said it did not believe the law, which was passed by parliament in Tanzania last Friday, would affect its operations because of agreements with the government that ensure “fiscal stability.”

The mining law will raise gold royalty payments from 3 to 4%, energy and mineral resources minister William Ngeleja said in a speech broadcast by the Tanzanian Broadcasting Corporation.

African Barrick’s first-quarter net income rose to US$53.1 million (R398 million) from US$11.6 million (R87 million) a year earlier, the company statement revealed. Sales climbed 76% to US$210.7 million (R1.6 billion).

The company produced 177 095 so-called attributable gold ounces in the quarter. It, is targeting full-year production of 800 000 to 850 000 ounces, compared to the 716 000 ounces produced last year.

African Barrick was spun off last month by Barrick Gold Corporation “’ the world’s largest gold producer “’ raising US$897 million (R6.7 billion) in the biggest London initial public offering since 2008.