‘The ball is now in Barrick’s court’: Tanzania says Acacia won’t be allowed any role in country – by Ken Karuri and Danielle Bochove (BNN/Bloomberg News – May 28, 2019)

https://www.bnnbloomberg.ca/

Tanzania will no longer allow Acacia Mining Plc (ABGLF.PK) to manage its mines in the country and will only work with the company’s parent, Barrick Gold Corp. (), to resolve the two-year impasse that has stymied operations, a government spokesman said.

“We will no longer work with Acacia,” Hassan Abbasi said Tuesday by phone. “Under no circumstances can Acacia be a party to the agreements, or have any role in the operation or management of the Barrick mining subsidiaries in Tanzania. The ball is now in Barrick’s court.”

Acacia has been at odds with Tanzania’s government since July 2017, when the state handed the London-listed gold producer a $190 billion tax bill, saying it under-declared bullion exports.

Barrick has since led discussions with the government and, in an effort to solve the impasse, surprised the market last week with an informal plan to buy out Acacia’s minority shareholders.

In response to Toronto-based Barrick’s buyout proposal, Acacia advised its shareholders last week not to take action as it considers developments and tries to verify Tanzania’s position.

For the rest of this article: https://www.bnnbloomberg.ca/tanzania-says-acacia-mining-won-t-be-allowed-any-role-in-country-1.1265069

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