Skip to main content
Open this photo in gallery:

Acacia has been caught up in sweeping changes to Tanzania’s mining industry.Supplied

Acacia Mining on Thursday hit back at parent company Barrick Gold Corp.’s allegation the miner was an obstacle to solving a long-running tax row in Tanzania.

Barrick CEO Mark Bristow said in a results presentation on Wednesday that Acacia was not co-operating, prompting Acacia to demand clarification from Barrick.

Acacia’s interim chief executive officer Peter Geleta said in an interview that Acacia was “totally committed to achieving a negotiated solution” and laid out what he said was a series of facts.

Acacia had already been in discussion with Tanzania’s government in June, 2017, when Barrick intervened without Acacia inviting it, he said.

“Barrick’s intervention at such an early stage of the dispute when Acacia was talking to the government of Tanzania undermined Acacia’s status, put both Acacia and Barrick into a difficult position and added a level of complexity that was unhelpful to an expedient resolution to the dispute. These are the facts and one cannot deny this,” Mr. Geleta said.

Acacia has been excluded from the negotiations since Barrick’s intervention, but Mr. Geleta said the company was engaging constructively with local, regional and national governments and had turned around “a failing business” in Tanzania.

On Thursday, it announced gold output at its North Mara mine in Tanzania had risen 54 per cent from the same time a year ago, helping to drive its share price 3 per cent higher.

In its production update, Acacia also said it was seeking clarification from Barrick on Mr. Bristow’s comments, “not all of which are consistent with Acacia’s own understanding of the position.”

Barrick had no immediate response on Thursday.

On Wednesday, Mr. Bristow said Barrick was “stuck in the middle between Acacia and the government of Tanzania who are in a standoff.”

“It will be a lot easier if Acacia were more engaging in their discussion,” he also said, adding Barrick, the majority shareholder, was open to buying out Acacia’s minority shareholders, but not at a premium.

Acacia has been caught up in sweeping changes to Tanzania’s mining industry spearheaded by President John Magufuli, who believes his country is not getting its fair share of profits.

The government has accused Acacia of evading taxes for years by under-declaring exports – an allegation dismissed by the company which said in 2017 it had been hit with a US$190-billion tax bill.

Report an editorial error

Report a technical issue

Tickers mentioned in this story

Study and track financial data on any traded entity: click to open the full quote page. Data updated as of 23/05/24 4:00pm EDT.

SymbolName% changeLast
Barrick Gold Corp

Follow related authors and topics

Authors and topics you follow will be added to your personal news feed in Following.

Interact with The Globe