Monday , April 15 2024

Tanzania, Acacia cordial negotiate a deal

Acacia Mine developers Barrick Gold Corp has announced intention to work Tanzanian authorities to find an amicably solution to the gold export ban.

The company aims to conclude the negotiations to lift the ban during the first half of 2018.

Barrick has reached a framework deal to end the months-long dispute with government which included the government getting a payment of $300-million from Acacia and a 16% stake in Acacia’s three gold mines in the country.

The $300-million would be paid out of Acacia’s ‘ongoing cash flows’ meaning payment would depend on Acacia’s ability to resume exports.

Authorities in Tanzania and Barrick would look at setting up joint oversight and verification of concentrate shipments, the company said.

Government accuses Acacia of understating its gold shipments and Acacia has denied the allegations..

Acacia’s operations have been affected by the ban which account for about 6% of Barrick’s 2017 gold production forecast.

Barrick said it expects to produce between 5.3-million and 5.5-million ounces of gold this year at all-in sustaining costs of between $740 and $770 per ounce.

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