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.

Barrick says it might have to revise its full-year forecasts as a result of the dispute. “In total, Acacia accounts for approximately 10 per cent of Barrick’s 2017 gold production guidance,” Barrick said in a statement.

Tanzania halted the export of gold concentrate on March 3, saying it wanted more of its gold to be processed inside the country as a way to create jobs, revenue and technology. Since then, Acacia has been trying to resolve the dispute without success.

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