Still no resolution for Acacia Mining in Tanzania dispute, says gold firm

Acacia Mining has revealed that its majority shareholder Barrick Gold has failed to meet a mid-year target for the completion of talks to end a debilitating tax dispute with the government of Tanzania.

African gold-focused miner Acacia was accused of significantly under-declaring export revenues for 17 years, which led to Tanzania enacting a minerals export ban and slapping an enormous US$190 billion tax bill on the company in July last year.

Barrick, which owns 63.9% of Acacia, is negotiating with Tanzania and said it would provide an agreement for approval by Acacia’s board by the end of June after striking a framework resolution deal with the government in October.

However, the dispute looks set to rumble on after Acacia claimed that Barrick would not provide a new deadline for the completion of the resolution talks. In its own statement, Barrick said talks are continuing but stopped short of providing a new deadline.

“The company will continue to engage with Barrick to seek to understand Barrick’s expectations for the future conduct and a timetable for the completion of its discussions with the government on Tanzania,” said Acacia.

Under uncompromising President John Magufuli, Tanzania is in the process of building a new mining regime in order to receive greater beneficiation from its thriving resources industry.

@RGNonline