16:07
Tanzania’s
President met with Barrick Gold Corp. Executive Chairman John Thornton in
an effort to resolve an impasse between the government and Acacia Mining Plc, of
which Barrick is a majority shareholder.
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| Barrick Gold Corp. Executive Chairman with Tanzania President |
“As the negotiations have
yet to commence, no agreements have been reached,” Acacia said in a statement Wednesday. “The negotiations will seek
a resolution that is in the best interests of all stakeholders.”
Earlier,
Tanzania’s presidency said Thornton had already had an initial meeting with
President John Magufuli in the commercial capital, Dar es Salaam, and that
Barrick is willing to reimburse money that’s owed to the government. Magufuli
has accused Acacia of failing to pay billions of dollars of taxes. Acacia
surged as much as 11 percent in London.
“Thornton
said his company is ready to hold talks with Tanzania that will consider the
interests of both sides and is ready to pay all the money it’s expected to pay
Tanzania,” Magufuli’s office said. The government welcomes such talks and will
establish a panel of experts to negotiate how the company will pay the money
and how it will conduct future operations in the country, according to the
statement.
Barrick confirmed the
meeting but not the details of what, if anything, had been agreed.
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| Barrick Gold Corp. Executive Chairman with Tanzania President |
The meeting took place two
days after the Tanzanian leader accused Acacia of operating illegally and
demanded it remit unpaid taxes. The accusation followed an audit of the country’s mineral exports over
the past 19 years that found mining companies failed to remit taxes of as much
as 108.5 trillion shillings ($48.5 billion) since 1998.
Toronto-based Barrick,
which owns 64 percent of Acacia, also agreed on Wednesday to help Tanzania
build a smelter, according to the presidency’s statement, which didn’t provide
further details.
“The meeting was
constructive and open, with the parties agreeing to enter into negotiations to
seek a resolution that is in the best interests of all stakeholders, including
Tanzania, Barrick, and Acacia,” Barrick said in a statement Wednesday.
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