Thursday , August 5 2021

RPT-New Barrick CEO sees miners alliance to set the Tanzanian tax row



(Repeat weekly story without changes in text)

* Mark Bristow planning to Tanzania talks before the close link

* The strategy of the Alliance had little success in Congo

From Zandi Shabalala and Susan Taylor

LONDON / TORONTO, 23 & # 39; November (Reuters) – The next chief executive & # 39; Barrick Gold said he wants to draw together the Tanzania mining industry to address tax dispute "desperate" that created several companies, including Mining Mining Acacia unit.

F & # 39; increasingly accelerating conflict that lasted almost two years, the government raised contracts & # 39; mining, faster taxes and royalties, and banned exports of raw minerals.

President John Magufuli, called "The Bulldozer", came to power in 2015 pledged to ensure a greater share of the wealth of resources and reduce corruption. Acacia was later tax account & # 39; $ 190 billion – about four & # 39; times the gross domestic product of the country – for non-reported results.

The miner, 63.9 percent owned & # 39; Barrick, now faces dozens of & # 39; criminal charges, from tax evasion to money laundering, three employees arrested on related charges

The founder & # 39; Randgold Mark Bristow, the new CEO & # 39; Barrick following its acquisition & # 39; $ 6.1 billion & # 39; Randgold closes at 1 & # 39; in January, says the problem & # 39; assembly & # 39; Barrick in Tanzania can & # 39; requires a collective strategy was not used there before.

"Tanzania has achieved industry wider & # 39; (mining) and the importance of the industry itself together with the government is a bad idea," said Bristow f & # 39; interview in & # 39; south this month.

While still not & # 39; there is no agreement to coordinate, "I do not think is a bad place to start," he said.

The mining accounted for 4.8 percent of Tanzania's GDP in 2016, the latest year for which figures are available. Acacia dominates the industry, followed by AngloGold Ashanti, Petra Diamonds and Gold Shanta.

AngloGold said it would consider joining with & # 39; Acacia on this issue. Source f & # 39; another mining company, who did not want to speak publicly, said that can & # 39; & # 39 has; a challenge that combines the Tanzania mining industry, you can & # 39; "do not want tirtu" issues & # 39; Acacia.

The collective approach is assured of success.

New code was enacted in the Democratic Republic of Congo, which skrappja of & # 39; stability agreement while royalties and hiking taxes, despite strong opposition from miners managed by Randgold and Glencore.

But Bristow, who says he is planning to intervene in Tanzania before the acquisition closes, is confident that it can & # 39; break the impasse.

"Barrick is concerned about the situation in the country now. It's desperate," he said.

The Executive Chairman John Thornton, who in & # 39; last October struck a deal & # 39; framework with the government not yet promulgated, Bristow said it was "very good" in Tanzania.

Under the agreement & # 39; October, Acacia had to pay $ 300 million to the government, give possession of & # 39; 16 percent and share the economic benefits of its mines.

Acacia, which lost more than two-thirds of its value since the beginning of & # 39; 2017, was separated from the deal, sources said. The greatest obstacle to its promulgation is the lack of & # 39; agreement on the schedule & # 39; payment & # 39; $ 300 million if tissetiljax the long-term fiscal dispute, the source said.

One of the two chief negotiators of & # 39; Barrick, special envoy to Tanzania and former chief operating Richard Williams, recently left the company.

The head & # 39; strategy & # 39; Barrick Kevin Thomson will now work on the issue with & # 39; the new Africa and the Middle East & # 39; Barrick COO Willem Jacobs, who will take responsibilities & # 39; Williams.

Jacobs, former head & # 39; & # 39 the operations; Central Africa and & # 39; South Africa & # 39; Randgold, conducted talks miner in Congo. (Editing by Jan Harvey)


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