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Barrick Gold and Tanzania reach agreement, govt to take stake in mines
Reuters Staff
1 Min Read
DAR ES SALAAM, Oct 19 (Reuters) - Barrick Gold has agreed that Tanzania will own a 16 percent stake in three gold mines operated by Barrick’s Acacia Mining Plc, the company and a government minister announced on Thursday.
Barrick Chairman John Thornton told a news conference in the Tanzanian capital that the company had also agreed to pay Tanzania $300 million as a show of good faith.
The company and the government have been in talks for months aimed at resolving a dispute over an export ban which has hit Acacia Mining. (Reporting by Fumbuka Ng‘wanakilala; writing by Maggie Fick; editing by Jason Neely)
Barrick Gold and Tanzania reach agreement, govt to take stake in mines
Barrick Gold and Tanzania Reach Agreement, Government to Take Stake in Mines
By REUTERSOCT. 19, 2017, 7:33 A.M. E.D.T.
Continue reading the main story Share This Page
Barrick Chairman John Thornton told a news conference in the Tanzanian capital that the company had also agreed to pay Tanzania $300 million (£227.6 million) as a show of good faith.
The company and the government have been in talks for months aimed at resolving a dispute over an export ban which has hit Acacia Mining.
(Reporting by Fumbuka Ng'wanakilala; writing by Maggie Fick; editing by Jason Neely)
Barrick Gold and Tanzania Reach Agreement, Government to Take Stake in Mines
[http://s0]
[https://financialpostcom]Tyler Anderson / National Post
Surprise, you owe Tanzania $300 million and 50% of what your gold mine makes
Bloomberg News
Tom Wilson and Omar Mohammed
October 20, 2017 8:49 AM EDT
Filed under:
Commodities
Acacia Mining Plc’s tumultuous year doesn’t seem likely to ease up any time soon.
The gold miner’s shares surged as much as 41 per cent Thursday, after controlling shareholder Barrick Gold Corp. said it moved closer to resolving a crippling dispute with Tanzanian authorities. Yet it seems Acacia itself — which must approve any deals Barrick negotiates with the government — was left out of the loop.
Tanzania banned exports of unprocessed gold in March and hit Acacia with a US$190 billion tax bill in July, claiming the company had under-declared export revenue since 2000. The ban meant the London-based company was forced to stockpile output and curb mining at its flagship operation. Third-quarter earnings plunged 70 per cent from a year ago, the company said Friday.
“Barrick Gold to give Tanzania 16% stake in mines, 50% of their revenues and $300 million to resolve a dispute” is locked Barrick Gold to give Tanzania 16% stake in mines, 50% of their revenues and $300 million to resolve a dispute
On Thursday afternoon, following three months of negotiations, multiple intercontinental flights and a six-hour meeting with Tanzanian President John Magufuli, Barrick Chairman John Thornton announced in the commercial capital, Dar es Salaam, that the two sides had reached a preliminary solution.
Tanzania will receive a US$300 million payment — from Acacia, not Barrick, the Canadian company later clarified — as “a show of good faith” and the two sides agreed to share the economic benefits from the mines 50-50, Thornton said. “Good trust” has been established between the two parties, he said. Barrick, which is based in Toronto, later issued two separate statements with details of the terms.
What Thornton didn’t say was whether Acacia’s management was on board with the plan. In its own statement issued nearly four hours after Thornton’s announcement, Acacia said it “just” received a copy of the framework agreement and was seeking further explanation. That hadn’t changed by Friday morning.
“We are seeking further clarification on what has been agreed,” Chief Executive Officer Brad Gordon told analysts on a call. “We believe it’s very early in the process, there’s a long way to go before any proposal is made to Acacia.”
Barrick said Thursday that the proposals included a new Tanzanian operating company to manage Acacia’s three mines, as well as giving the state a 16 per cent stake in the assets. The lifting of the national ban on the export of concentrates was also under discussion, it said.
A group from the two sides still needs to work out the details and payment terms of an eventual agreement.
“Although there are some early indications towards a resolution, which is positive, more detail and clarity on the framework is still required,” Andrew Kaip at analyst at BMO Capital Markets, said in a note.
While it’s still seeking clarification, Acacia doesn’t have the ability to make an upfront US$300 million payment, Chief Financial Officer Andrew Wray said on the call Friday.
“Barrick are equally aware of our balance sheet as we are,” he said.
Barrick has had a troubled time in Tanzania since it entered the country in 1999. It spun off the business to create African Barrick Gold Plc — later renamed Acacia – but struggled to manage costs and community relations. Barrick continues to hold a 64 per cent stake in the company.
SHARES FALL
Acacia’s shares, which closed 16 per cent higher on Thursday, fell 6.8 per cent by 11:34 a.m. in London Friday.
The company’s third-quarter revenue fell 40 per cent from a year earlier, while profit dropped to US$16 million, from US$52.8 million a year ago.
While Barrick has won Magufuli’s backing, that support may not extend to Acacia, the president suggested.
“The government of Tanzania from now onwards will deal directly, as we have been dealing, with you Barrick,” he said in a televised address following the negotiations. “We trust Barrick.”
Bloomberg.com
Surprise, you owe Tanzania $300 million and 50% of what your gold mine makes
MY TAKE
Wakunya njooni muongee basi...
La zaidi
Tena hawa wazungu wameona aibu hawajaandika agreements zote!
*Habari ya kuwa pesa zote za migodi lazima ziwekwe kwenye banks za hapa tz hawajaandika.
*Hawajaandika kuhusu kuhamisha office za barrick kutoka London na cape town kuletwa Mwanza.
*Hawajaandika khs hizi kampuni kuajiri wafanyakazi kwa mkataba wa kudumu badala ya ile ya mda mfupi ya sasa, na kuwapa makazi watakayoishi wao na familia zao.
*Hawajaandika khs wakurugenzi na wasaidizi wao kwenye ofisi zitakazojengwa watakuwa watanzania.
Na mengine mengi, wazungu wamepigwa butwaa na wakenya wote.
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Reuters Staff
1 Min Read
DAR ES SALAAM, Oct 19 (Reuters) - Barrick Gold has agreed that Tanzania will own a 16 percent stake in three gold mines operated by Barrick’s Acacia Mining Plc, the company and a government minister announced on Thursday.
Barrick Chairman John Thornton told a news conference in the Tanzanian capital that the company had also agreed to pay Tanzania $300 million as a show of good faith.
The company and the government have been in talks for months aimed at resolving a dispute over an export ban which has hit Acacia Mining. (Reporting by Fumbuka Ng‘wanakilala; writing by Maggie Fick; editing by Jason Neely)
Barrick Gold and Tanzania reach agreement, govt to take stake in mines
Barrick Gold and Tanzania Reach Agreement, Government to Take Stake in Mines
By REUTERSOCT. 19, 2017, 7:33 A.M. E.D.T.
Continue reading the main story Share This Page
- Share
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- Save
Barrick Chairman John Thornton told a news conference in the Tanzanian capital that the company had also agreed to pay Tanzania $300 million (£227.6 million) as a show of good faith.
The company and the government have been in talks for months aimed at resolving a dispute over an export ban which has hit Acacia Mining.
(Reporting by Fumbuka Ng'wanakilala; writing by Maggie Fick; editing by Jason Neely)
Barrick Gold and Tanzania Reach Agreement, Government to Take Stake in Mines
[http://s0]
[https://financialpostcom]Tyler Anderson / National Post
Surprise, you owe Tanzania $300 million and 50% of what your gold mine makes
Bloomberg News
Tom Wilson and Omar Mohammed
October 20, 2017 8:49 AM EDT
Filed under:
Commodities
Acacia Mining Plc’s tumultuous year doesn’t seem likely to ease up any time soon.
The gold miner’s shares surged as much as 41 per cent Thursday, after controlling shareholder Barrick Gold Corp. said it moved closer to resolving a crippling dispute with Tanzanian authorities. Yet it seems Acacia itself — which must approve any deals Barrick negotiates with the government — was left out of the loop.
Tanzania banned exports of unprocessed gold in March and hit Acacia with a US$190 billion tax bill in July, claiming the company had under-declared export revenue since 2000. The ban meant the London-based company was forced to stockpile output and curb mining at its flagship operation. Third-quarter earnings plunged 70 per cent from a year ago, the company said Friday.
“Barrick Gold to give Tanzania 16% stake in mines, 50% of their revenues and $300 million to resolve a dispute” is locked Barrick Gold to give Tanzania 16% stake in mines, 50% of their revenues and $300 million to resolve a dispute
On Thursday afternoon, following three months of negotiations, multiple intercontinental flights and a six-hour meeting with Tanzanian President John Magufuli, Barrick Chairman John Thornton announced in the commercial capital, Dar es Salaam, that the two sides had reached a preliminary solution.
Tanzania will receive a US$300 million payment — from Acacia, not Barrick, the Canadian company later clarified — as “a show of good faith” and the two sides agreed to share the economic benefits from the mines 50-50, Thornton said. “Good trust” has been established between the two parties, he said. Barrick, which is based in Toronto, later issued two separate statements with details of the terms.
What Thornton didn’t say was whether Acacia’s management was on board with the plan. In its own statement issued nearly four hours after Thornton’s announcement, Acacia said it “just” received a copy of the framework agreement and was seeking further explanation. That hadn’t changed by Friday morning.
“We are seeking further clarification on what has been agreed,” Chief Executive Officer Brad Gordon told analysts on a call. “We believe it’s very early in the process, there’s a long way to go before any proposal is made to Acacia.”
Barrick said Thursday that the proposals included a new Tanzanian operating company to manage Acacia’s three mines, as well as giving the state a 16 per cent stake in the assets. The lifting of the national ban on the export of concentrates was also under discussion, it said.
A group from the two sides still needs to work out the details and payment terms of an eventual agreement.
“Although there are some early indications towards a resolution, which is positive, more detail and clarity on the framework is still required,” Andrew Kaip at analyst at BMO Capital Markets, said in a note.
While it’s still seeking clarification, Acacia doesn’t have the ability to make an upfront US$300 million payment, Chief Financial Officer Andrew Wray said on the call Friday.
“Barrick are equally aware of our balance sheet as we are,” he said.
Barrick has had a troubled time in Tanzania since it entered the country in 1999. It spun off the business to create African Barrick Gold Plc — later renamed Acacia – but struggled to manage costs and community relations. Barrick continues to hold a 64 per cent stake in the company.
SHARES FALL
Acacia’s shares, which closed 16 per cent higher on Thursday, fell 6.8 per cent by 11:34 a.m. in London Friday.
The company’s third-quarter revenue fell 40 per cent from a year earlier, while profit dropped to US$16 million, from US$52.8 million a year ago.
While Barrick has won Magufuli’s backing, that support may not extend to Acacia, the president suggested.
“The government of Tanzania from now onwards will deal directly, as we have been dealing, with you Barrick,” he said in a televised address following the negotiations. “We trust Barrick.”
Bloomberg.com
Surprise, you owe Tanzania $300 million and 50% of what your gold mine makes
MY TAKE
Wakunya njooni muongee basi...
La zaidi
Tena hawa wazungu wameona aibu hawajaandika agreements zote!
*Habari ya kuwa pesa zote za migodi lazima ziwekwe kwenye banks za hapa tz hawajaandika.
*Hawajaandika kuhusu kuhamisha office za barrick kutoka London na cape town kuletwa Mwanza.
*Hawajaandika khs hizi kampuni kuajiri wafanyakazi kwa mkataba wa kudumu badala ya ile ya mda mfupi ya sasa, na kuwapa makazi watakayoishi wao na familia zao.
*Hawajaandika khs wakurugenzi na wasaidizi wao kwenye ofisi zitakazojengwa watakuwa watanzania.
Na mengine mengi, wazungu wamepigwa butwaa na wakenya wote.
nomasana, sam999, NairobiWalker, hbuyosh, msemakweli, simplemind, Kimweri, Bulldog, MK254, Kafrican, Ngongo, Ab_Titchaz, mtanganyika mpya, JokaKuu, Ngongo, Askari Kanzu, Dhuks, Yule-Msee, waltham, Mzee, mombasite gabriel, Juakali1980, Boda254, mwaswast, MwendaOmo, Iconoclastes, oneflash, Kambalanick, 1 Africa, saadeque, burukenge, nyangau mkenya, Teen-Upperhill Nairobi, kadoda11
