Archive | Barrick Gold Corporation

ANALYSIS: Turnaround in Tanzania’s Mining Sector Is Possible – by Krispinana Krispinana (All Africa – June 18, 2017)

http://allafrica.com/

The mining sector in Tanzania is experiencing hard times now. The legacy of mining of the past decades has been shown to be very unfavourable to the country’s interests in a recent report of Prof Nehemiah Osoro Committee formed by President John Magufuli to investigate the legal and economic impact of mining in relation to the impoundment of the mineral concentrates in containers that were destined for export by Acacia Mining Plc, a subsidiary of Barrick Gold Corporation.

Tanzania still has the potential in mining, but it needs the mining sector that operates on an overhauled legal, tax and regulatory landscape. This piece is intended to explore and flesh out tough dialogue between Barrick Gold Corporation, on the one part, and the government of Tanzania, on the other. Such dialogue is critical to reorganising Tanzania’s mining sector.

There is a view enunciated by economist Milton Friedman in 1970 that “the business of business is business”, that is, to make profit notwithstanding the existing cultural, socio-political and environmental circumstances of a country. Continue Reading →

UPDATE 2-Argentina lifts curbs on Barrick mine; full operations lag (Reuters U.K. – June 15, 2017)

https://uk.reuters.com/

Authorities in the Argentine province of San Juan lifted restrictions on leaching operations at Barrick Gold Corp’s Veladero mine on Thursday, but the world’s biggest gold producer said it would not immediately resume full operations.

Judge Pablo Oritja told a radio station that he understood Barrick had finished all required work, following its third cyanide spill in 18 months, and had ordered an end to restrictions put in place in late March.

Barrick will not begin adding cyanide until it has completed the ramp up of a new system and verified all elements are ready for normal operations, in keeping with a plan the miner submitted to regulators, said spokesman Andy Lloyd. Continue Reading →

UPDATE 4-Barrick Gold to hold talks with Tanzania over export row – by Fumbuka Ng’wanakilala and David Lewis (Reuters U.S. – June 14, 2017)

https://www.reuters.com/

DAR ES SALAAM/NAIROBI, June 14 Barrick Gold’s chairman and Tanzania’s president met on Wednesday and agreed to hold talks aimed at resolving an escalating dispute over an export ban which has hit Barrick’s Acacia Mining PLC .

Shares in Acacia, which is 63.9 percent owned by Barrick, jumped as much as 11 percent, to 303 pence, after the news and closed 5.5 percent higher, outpacing sector rivals. Tanzania is Africa’s fourth-largest gold producer, and Acacia its largest miner, with three gold mines that also produce copper in the East African country.

Acacia’s market value has nearly halved to about $1.4 billion since Tanzania banned the export of unprocessed ore in March, part of a push for the construction of a local smelter to make the country’s gold exports more valuable. Continue Reading →

Tanzania’s Acacia Spat Shows Deepening Battle With Business – by Omar Mohammed (Bloomberg News – June 13, 2017)

https://www.bloomberg.com/

Tanzanian President John Magufuli’s escalating battles with business risk alienating the very investors he needs to drive his multi-billion dollar industrialization policy.

On Monday, the 57-year-old leader ratcheted up his dispute with miners by accusing Acacia Mining Plc of operating illegally in Tanzania and insisting the government is owed billions of shillings of unpaid taxes. It’s the latest in a series of broadsides against private investors who are being unnerved by his administration’s stance and its lack of consultation on policy. Shares in Acacia, which denies any wrongdoing, slumped as much as 16 percent.

“It’s negative that you have these uncertainties playing out in the market, especially at a time when you’re relying on growth and infrastructure development to be supported by private sector activity,” said Lisa Brown, a risk analyst at Rand Merchant Bank in South Africa. Continue Reading →

COMMENT: Two committees, twice the bad news for Acacia – by Marilyn Scales (Canadian Mining Journal – June 13, 2017)

http://www.canadianminingjournal.com/

Followers of international mining news have read about the Tanzanian government’s beef with Acacia Mining which is headquartered in London, U.K.

Last month we learned that the report of a government committee says Acacia owes tens of billions in unpaid taxes. The committee estimated output from the Bulyanhulu and Buzwagi gold-copper mines is 10 times what the company reported and on which it paid royalties and taxes. The committee checked 277 containers of concentrate ready to ship from the mines, and it said there must be 250,000 oz. of gold in them. Acacia’s number is 26,000 oz.

All told, Tanzania says it has lost US$49 billion in royalties and taxes on gold-bearing concentrate exports from 1998 to 2017. The result is that Tanzania has blocked all exports of concentrate. Acacia has been exporting concentrate from Bulyanhulu since 2001 and from Buzwagi since 2010, and the company insists it has declared all the associated gold, copper and silver revenue. Continue Reading →

Tanzanian Government Accuses Acacia of Mining Gold Illegally – by Omar Mohammed, Helen Nyambura-Mwaura and Thomas Biesheuvel (Bloomberg News – June 12, 2017)

https://www.bloomberg.com/

Tanzania’s government accused Acacia Mining Plc of operating illegally in the East African country and said mining companies have been evading taxes. Acacia’s shares slumped.

An audit ordered by President John Magufuli in March found that Acacia had been conducting business in Tanzania “contrary to the law,” Nehemiah Osoro, chairman of a committee of academics, lawyers and economists that conducted the probe, said at a briefing Tuesday in the commercial capital, Dar es Salaam. The audit covered mineral exports over the past 19 years.

“We should summon them and demand that they pay us back our money,” Magufuli said after receiving the committee’s report. “If they accept that they stole from us and seek forgiveness in front of God and the angels and all Tanzanians and enter into negotiations, we are ready to do business.” Continue Reading →

In-depth interview: Barrick’s Dushnisky and Goldcorp’s Garofalo on gold mining’s future (Northern Miner – June 11, 2017)

Global mining news

At the Canadian Mining Symposium hosted by The Northern Miner at Canada House in London in early May, session moderator Greg Huffman, managing director and global head of mining sales at Canaccord Genuity, sat down with Barrick Gold (TSX: ABX; NYSE: ABX) president Kelvin Dushnisky and Goldcorp (TSX: G; NYSE: GG) CEO David Garofalo for an in-depth conversation on the strategies they use to guide both companies, plus a wider look at what the future holds for gold mining globally. The following is an edited transcript of the exchange.

Question: Looking at some of Goldcorp’s latest acquisitions such Gold Eagle, Virginia, Probe and Kaminak, is there now a premium on assets in safer jurisdictions, given the current political turmoil worldwide?

DAVID GAROFALO: It’s always been fundamental to Goldcorp’s strategy to stay in low political-risk jurisdictions — generally, investment-grade countries with the notable exception of taking a bit more risk in investing in Argentina prior to the Macri regime. But that was a generational asset in Cerro Negro, and it’s been born out in the changing regime there and the Macri economic model. Continue Reading →

Pakistan to open up mineral-rich Balochistan to China ‘Silk Road’ firms – by Gul Yousufzai and Drazen Jorgic (Live Mint.com – June 2, 2017)

http://www.livemint.com/

Quetta (Pakistan): Pakistan’s resource-rich Balochistan province wants Chinese companies to kick-start a boom in its mining industry by including the sector into Beijing’s ‘Belt and Road’ initiative, a senior provincial mining official said.

Beijing has pledged $57 billion for the China-Pakistan Economic Corridor (CPEC), a flagship ‘Belt and Road‘ project that first focused on Chinese firms building roads and power stations but is now expanding to include setting up industries.

Mineral extraction is a deeply contentious issue in Balochistan, where many indigenous people are angry that the province remains Pakistan’s poorest despite its vast mineral wealth. Continue Reading →

In conversation with Dominican Republic Pueblo Viejo’s Greg Walker (Barrick Beyond Borders – May 2017)

http://barrickbeyondborders.com/

Walker is the Executive General Manager of the Pueblo Viejo mine in the Dominican Republic

Greg Walker is the Executive General Manager of the Pueblo Viejo mine, a role he has held since September 2016. He has more than 37 years of experience in mining, including 14 at Barrick. Before joining Pueblo Viejo, Greg worked in progressively senior roles at the Porgera Joint Venture in Papua New Guinea, including Executive Managing Director. He is a former General Manager of the Bulyanhulu and Tulawaka mines in Tanzania, both properties of Acacia Mining, in which Barrick holds a 64 percent stake. He has a proven track record of delivering best-in-class business improvement, training and mentoring local workforces, and of working exceptionally well with government and community partners.

BEYOND BORDERS: YOU’VE BEEN AT PUEBLO VIEJO FOR EIGHT MONTHS NOW, WHAT ARE SOME THINGS THAT STAND OUT FOR YOU ABOUT THE OPERATION?

Greg Walker: Pueblo Viejo is a world-class operation, has a world-class ore body and is one of the top three gold-producing mines in the world. It’s a great resource with untapped potential. Continue Reading →

TV Ontario’s The Agenda – Steve Paikin Interviews With Mining Industry and NGO Critics (TV Ontario – May 31, 2017)

Toronto: Mining Capital of the World

Ask yourself: what’s the most important mining city in Ontario? Sudbury? Timmins? You could argue, it’s Toronto, where almost 60 per cent of all publicly-traded mining companies in the world are listed on the Toronto Stock Exchange and the TSX-Venture Exchange. And while all that may be well known to those in the business world, it’s far from widely appreciated beyond that. The Agenda discusses how Toronto rose to be a mining capital. Continue Reading →

Strike Suspended at Barrick’s Veladero Mine in Argentina – by Danielle Bochove (Bloomberg News – May 30, 2017)

https://www.bloombergquint.com/

(Bloomberg) — Striking miners at Barrick Gold Corp.’s Veladero operation in Argentina will return to work as the two sides negotiate, alleviating the latest challenge facing the world’s largest gold producer.

The Toronto-based company has initiated “a formal dialogue process with the union leadership to address issues of concern,” it said Monday in a statement.

AOMA, one of nine unions at Veladero that’s focused on mine operations, downed tools on Sunday. Under local labor rules, striking employees are required to return to work once formal talks begin, Barrick said. Continue Reading →

Losses mount at Barrick Gold’s Africa subsidiary after export ban – by Geoffrey York (Globe and Mail – May 28, 2017)

https://www.theglobeandmail.com/

The Africa subsidiary of Barrick Gold Corp. says it is losing more than $1-million (U.S.) in daily revenue as Tanzania extends an export ban and accuses mining companies of massive tax evasion.

Acacia Mining, majority-owned by Toronto-based Barrick, is the biggest company caught up in the growing furor over Tanzanian allegations that the miners have been misstating their gold production by a huge amount.

The controversy is part of a wave of resource nationalism across Africa, with many governments convinced they are being cheated by foreign investors as a result of misinvoicing schemes and sweetheart deals on taxes and royalties. Continue Reading →

Acacia Mining fights back in Tanzania gold ore battle – by Henry Sanderson and Neil Hume (Financial Times – May 26, 2017)

https://www.ft.com/

Shares in Acacia Mining bounced 8 per cent on Friday after the crisis-hit miner fought back against accusations that it had misstated the value of its gold shipments from Tanzania by up to 10 times.

The London-listed company said the claims made by a presidential committee in the east African country this week that it was under-reporting exports from its Bulyanhulu and Buzwagi mines did not stand-up to scrutiny.

“If the committee’s published findings were based on accurate data, Bulyanhulu and Buzwagi would be the world’s two largest gold producers,” the company said in a statement. “Given the magnitude of this discrepancy, we believe there should be an independent review.” Continue Reading →

Tanzanian president fires mining minister and chief of state-run agency – by Fumbuka Ng’wanakilala (Reuters U.S. – May 24, 2017)

http://www.reuters.com/

DAR ES SALAAM – Tanzania President John Magufuli fired his mining minister and the chief of the state-run mineral audit agency on Wednesday after an investigation into possible undeclared exports by mining companies to evade tax.

Magufuli’s decision, announced in a televised speech, signals an escalation of tensions between the government and the mining industry, which has denied engaging in tax evasion. Mining accounts for about 4 percent of the East African nation’s gross domestic product.

Magufuli said the investigation report revealed that Acacia Mining declared the presence of gold, copper and silver in its mineral sand exports but did not declare other precious metals in the consignments. Continue Reading →

Nevada gold production increases in 2016 – by Adella Harding (Elko Daily Free Press – May 18, 2017)

http://elkodaily.com/

Gold production in Nevada rose 2.4 percent in 2016 to nearly 5.47 million ounces, while silver production was down 6.4 percent to a nearly 8.89 million ounces, show new figures from the Nevada Division of Minerals. Total gold production in 2015 was nearly 5.34 million ounces, and 2015 silver production totaled a little less than 9.5 million ounces.

“The value of production won’t be available until the Department of Taxation releases their Net Proceeds of Minerals bulletin,” however, said Michael Visher, deputy administrator for the minerals division, in an email in May.

The two largest gold producers were Barrick Gold Corp. and Newmont Mining Corp. Barrick produced nearly 2.64 million ounces of the total gold production and 200,757 ounces of silver from operations on the Carlin Trend, the Cortez operations near Crescent Valley and Turquoise Ridge in Humboldt County. Continue Reading →