Barrick: No Timetable For Acacia-Tanzania Tax Negotiations
(Kitco News) - Barrick Gold Corp. (NYSE, TSX: ABX) said progress has been made in tax negotiations involving the government of Tanzania and Acacia Mining and that the company is no longer setting a timetable for an agreement.
Barrick owns 63.9% of the shares in Acacia, which is listed on the London Stock Exchange and operates independently of Barrick. However, Barrick has been negotiating on behalf of Acacia. According to news reports, Barrick previously said it was looking to provide an agreement to the Acacia board by the end of this month.
“Discussions between the government of Tanzania and Barrick are constructive,” Barrick said in a prepared statement released Sunday. “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.”
Barrick said that should it conclude discussions with the government, any proposal would be sent to the independent committee of the Acacia board of directors for its consideration.
Tanzania is looking to gain more revenues from mining in the country and last year hit its biggest miner, Acacia, a $190 billion bill for unpaid taxes, penalties and interest, according to a Reuters report. Acacia denies wrongdoing. A ban on unprocessed ore went into effect in March 2017 and shares of Acacia have tumbled.
“The company has been supporting Barrick in its discussions with the GoT [government of Tanzania], but has not been directly involved in those discussions to date,” said a statement on Acacia’s website.