Archive | Barrick Gold Corporation

Tanzania’s Tougher Mining Laws Rattle Companies – by Nicholas Bariyo and Jacquie McNish (Wall Street Journal – August 3, 2017)

https://www.wsj.com/

Barrick is meeting with government to discuss $190 billion bill for back taxes and penalties

International miners that flocked to Tanzania for its low taxes and friendly laws are running up against a populist president eager to gain a greater share of mining revenue.

Since his election two years ago, President John Magufuli, nicknamed “the bulldozer” for his forceful leadership style, has taken a series of actions he says are aimed at redistributing mining revenue to Tanzanians. The moves range from compelling miners to list their stakes in local stock exchanges and demanding higher taxes and royalties to threatening to tear up entire extraction contracts.

“I will not hesitate to close down all the mines if companies don’t pay what they owe us,” Mr. Magufuli told a cheering crowd in Tanzania’s north western mining region last week. “I have launched an economic war.” Continue Reading →

Tanzania and Barrick start talks to resolve Acacia row – by Fumbuka Ng’wanakilala (Reuters U.S. – July 31, 2017)

https://www.reuters.com/

DAR ES SALAAM (Reuters) – The Tanzanian government and Barrick Gold have started talks to resolve a tax dispute involving the Canadian company’s subsidiary Acacia Mining, the president’s office said on Monday.

The government accuses Acacia, which is 63.9 percent owned by Barrick, of evading taxes for years by under-declaring exports and has banned exports of gold and copper concentrates.

Acacia denies the accusations, which have pummelled its share price, and said last week it had been hit with a $190 billion tax bill, which is equivalent to four times the East African country’s annual gross domestic product. Continue Reading →

Cost-cutting miners shine despite range-bound gold prices – by Sunny Freeman (Financial Post – July 28, 2017)

http://business.financialpost.com/

Canadian gold miners posted solid second-quarter profits driven by increasing efficiency at their operations rather than any stellar increase in the price of gold. Toronto-based miners Barrick Gold Corp. and Agnico Eagle Mines Ltd. and Vancouver-based Goldcorp Inc. all surprised analysts with earnings that beat expectations as they continue to drive down their cost of sales.

Historically, the performance of gold companies tends to move in tandem with bullion prices, but the miners better-than-expected year-over-year results came even as the price of gold during the quarter remained virtually flat — up just three per cent over the year before.

Gold companies have been focused on driving down cash costs and paring their portfolios to deal with a years-long decline in the commodities market and those moves during bust times appear to be paying off as the cycle begins to make a more positive shift. Continue Reading →

Mining Giants Post Red-Hot Results in Lukewarm Gold Market – by Danielle Bochove (Bloomberg News – July 27, 2017)

https://www.bloomberg.com/

Four of the world’s top gold companies were in full “beats” mode in the second quarter, wringing more value out of their mines amid tepid gold prices.

A day after Newmont Mining Corp. reported higher-than-expected adjusted profits by extracting more gold at lower costs, Canada-based Barrick Gold Corp., Goldcorp Inc. and Agnico Eagle Mines Ltd. followed suit Wednesday.

“It’s the night of the beats,” Andrew Kaip, a Toronto-based analyst at BMO Capital Markets, said by telephone. “The read here is that their optimization programs are continuing to deliver and their capacity to improve their operational outlook continues to have momentum.” Continue Reading →

Tanzania’s President Urges Increased Control of Mineral Wealth – by Omar Mohammed (Bloomberg News – July 26, 2017)

https://www.bloomberg.com/

Tanzanians are being cheated out of the country’s mineral wealth and should take more control of their natural resources, President John Magufuli said.

Investors in Tanzania’s mining industry have “stolen” from the country by failing to distribute a fair share of the revenue they generate from gold and other minerals, Magufuli said in a speech in the central region of Singida on Tuesday.

“We are surrounded by wealth; we have to stand up and protect it,” he said. “It shouldn’t happen that we have all this wealth, sit on it, while others come and benefit from it by cheating us.” Continue Reading →

This Miner’s $190 Billion Tax Bill Would Take Centuries to Pay – by Thomas Biesheuvel (Bloomberg News – July 24, 2017)

https://www.bloomberg.com/

Tanzania sent Acacia Mining Plc a tax bill equal to almost two centuries worth of the gold producer’s revenue.

The government issued the company, which mines all of its gold in the African country, with a $40 billion tax bill and another $150 billion in interest and penalties, Acacia said in a statement Monday. The charge covers alleged under-declared export revenues from the Bulyanhulu and Buzwagi mines over periods between 2000 and 2017.

Acacia reiterated that it has fully declared all revenues. The stock sank as much as 17 percent on Tuesday to the lowest since December 2013. In just three days, the company has lost 42 percent of its value.

The giant tax bill is the latest twist in an increasingly ugly spat between the government and Acacia. Continue Reading →

Acacia Mining pressed over deaths in Tanzania – by David Pilling (Financial Times – July 23, 2017)

https://www.ft.com/

Acacia Mining, which is in the midst of a multibillion-dollar dispute with the Tanzanian government over tax and royalties, is facing renewed pressure to address long-running alleged human rights violations at one of its mines in the east African country.

Since 2014, at least 22 people have been killed and 69 injured, many after being shot at or near Acacia’s North Mara gold mine, according to Rights and Accountability in Development, a UK charity, which accuses the London-listed miner of taking a “militarised” approach to guarding its assets in one of Tanzania’s poorest regions.

It was “unfathomable” that Acacia was not addressing human rights concerns as part of high-level discussions with the government to resolve a separate tax dispute, Anneke Van Woudenberg, executive director of RAID, said. Continue Reading →

Exclusive: Tanzania questions Acacia Mining staff in row with government (Reuters U.S. – July 21, 2017)

https://www.reuters.com/

LONDON (Reuters) – Tanzania detained and questioned two senior local Acacia Mining staff at an airport this week in a dispute with the government, two sources said on Friday, and the company said it was having trouble renewing work permits for foreign staff.

Chief Executive Brad Gordon denied a Reuters report that foreign staff were asked to leave by the government due to a dispute over mining licenses and accusations of tax evasion.

He said its local employees had been interviewed by Tanzanian “government agencies” but did not confirm detentions. “We were having difficulty getting work permits renewed. But no foreign nationals have been asked to leave the country. So there may be some confusion in that. That’s a normal part of business,” Gordon told Reuters. Continue Reading →

Acacia agrees to pay higher taxes set in Tanzania new mining law – by Cecilia Jamasmie (Mining.com – July 14, 2017)

http://www.mining.com/

Acacia Mining (LON:ACA), Tanzania’s No.1 gold producer majority owned by Barrick, has agreed to pay higher mining taxes in the country even though it’s still disputing in an international court some of the changes to the laws governing its three gold mines.

The company, which spun off from Barrick Gold in 2010, will now pay a 6% royalty, up from 4%, on metallic minerals including gold, copper and silver. The miner also said it would continue to pay the recently imposed 1% clearing fee on exports.

Acacia’s decision to comply with higher royalties fits experts forecast that companies already active in the Tanzanian mining sector will stay put, despite the much-less favourable regulatory environment. Continue Reading →

Transforming the Mining Industry with Barrick Gold – by Jennifer Rideout (Cisco Blog – July 13, 2017)

https://blogs.cisco.com/

Global mining leader Barrick Gold is at the forefront of digital transformation. The organization, headquartered in Toronto, Ontario, is focused on becoming a 21st century company – a priority that drives Barrick Gold to integrate technology into everything they do.

Look no further than Barrick’s recent partnership announcement with Cisco and Great Basin College in Nevada for proof of this focus. The company is investing nearly $400,000 over three years to “bring digital and information technology skills development courses, free of charge, to groups in the community” through Cisco’s Networking Academy curriculum.

The company doubled-down on this announcement by stating they plan to expand the program to every community in which they operate – including in Argentina, Canada, Chile, the Dominican Republic, Peru, and Zambia. Continue Reading →

Michelle Ash: Barrick Gold’s Chief Innovation Officer: Digital Mining

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Michelle Ash is the Chief Innovation Officer at Barrick, where she looks at how innovation can not only drive productivity in the existing business, but how it can be harnessed to deliver alternative business models.

She joined Barrick in January 2016, with more than 20 years’ experience in the mining and manufacturing sectors, with a focus on business improvement and change management.

Previously she was Chief Operating Officer for Acacia Mining in Tanzania, spearheading business improvement programs that resulted in operational improvements and cost-savings. Continue Reading →

Tanzania’s president signs new mining bills into law (Reuters U.S. – July 10, 2017)

https://www.reuters.com/

Tanzanian President John Magufuli said on Monday he has signed into law new mining bills which require the government to own at least a 16 percent stake in mining projects. The laws, which also increase royalties tax on gold and other minerals, were passed by parliament last week despite opposition from the mining industry body.

Magufuli reiterated on Monday that no new mining licenses would be issued until Tanzania “puts things in order” and that the government would review all existing mining licenses with foreign investors.

“We must benefit from our God-given minerals and that is why we must safeguard our natural resource wealth to ensure we do not end up with empty mining pits,” Magufuli told a rally in his home village in Chato district, northwestern Tanzania. Continue Reading →

Agreement between Western Shoshone and Barrick mining benefits both – by Sally Roberts (Northern Nevada Business Weekly – July 10, 2017)

Hostilities have long persisted between Nevada’s mining companies and the state’s Native American population. That was particularly true in the Elko area in the early years of this century.

“There were many many years of bad, difficult communications with Placer Dome, which had a different way of approaching the concerns of the Western Shoshone,” remembers Brian Mason, a member of the Western Shoshone, and now program manager of Native American Affairs for Barrick Gold Corporation.

Mason began his work in mining with Placer Dome’s environmental restoration department. Whenever Placer Dome opened the permitting process for a project, which includes public comment, it faced 200 to 300 objections from tribal members, he said. That led to lawsuits and court delays. Continue Reading →

A brutal lesson for multinationals: golden tax deals can come back and bite you – by Maya Forstater and Alexandra Readhead (The Guardian – July 6, 2017)

https://www.theguardian.com/

A dispute in Tanzania highlights the tense relations that often exist between mining companies and governments

Mines are long-term investments, but relationships between mining companies and governments are often tense and impatient. Governments fear that they will be ripped-off by multinational companies, while the companies worry that governments will hold their assets hostage. Nervous companies seek contract terms that allow them to recover their costs as quickly as possible.

However, this leads to taxes trickling in while exports are beginning to flood out. The risk is that governments see their fears confirmed and threaten to rip up the contracts. This risk just became reality for Acacia Mining plc in Tanzania.

The FTSE 250 company is the largest gold producer in the country, and has long faced criticism for the amount of tax it pays there. Acacia’s “payments to government” report [pdf] released last week shows that the company, which operates three mines in Tanzania, exported $1bn (£770m) of gold, copper and silver last year, and only paid 8% of this in taxes and royalties to the government. Continue Reading →

Tanzania Passes Laws Enabling Renegotiation of Mining Deals – by Omar Mohammed (Bloomberg News – July 4 2017)

https://www.bloomberg.com/

Tanzania approved two laws that enable the government to renegotiate contracts with mining and energy companies as the state seeks a greater share of revenue from natural resources.

The bills, which deal with state sovereignty over mineral wealth and contracts containing “unconscionable terms,” were approved by parliament on Monday, lawmaker Peter Kafumu said in a text message. The Tanzania Chamber of Minerals and Energy, the main industry lobby group that has opposed the new laws, said the implications of the bills are “vast.”

“There are many areas that the three bills touch on,” TCME Executive Secretary Gerald Mturi said by phone Tuesday from Dar es Salaam, the commercial capital. “The industry is going to be affected big time.” Continue Reading →