Barrick comments on Tanzania concentrate export ban
A miner operates his scoop tram at the Barrick Gold/Acacia Mining Bulyanhulu gold mine in Tanzania. Source: Acacia Mining plc.
Barrick Gold Corp. [ABX-TSX, NYSE] has commented on the potential impact of an ongoing ban on mineral concentrate exports affecting the operations of Acacia Mining plc in Tanzania.
Barrick holds a 63.9% equity interest in Acacia, a publicly traded company listed on the London Stock Exchange that is operated independently of Barrick. Financial results from Acacia are consolidated for accounting purposes. Cost and production information from Acacia is presented on an attributable basis in Barrick’s quarterly and annual mine statistics and annual guidance.
Barrick’s current 2017 guidance assumes a contribution of 545,000-575,000 ounces of gold (63.9% basis) from Acacia, at a cost of sales of US $860-$910/oz, and all-in sustaining costs of US $880-$920/oz.
Acacia operations impacted by the current ban on concentrate exports (Bulyanhulu and Buzwagi) account for approximately 6% of Barrick’s 2017 gold production guidance. In total, Acacia accounts for approximately 10% of Barrick’s 2017 gold production guidance.
Barrick is offering Acacia its full support as Acacia works to resolve this matter with the government of Tanzania. Barrick will evaluate any necessary adjustments to its full-year outlook should Acacia determine a revision to its own 2017 guidance is required.