The Financial Post reports in its Tuesday, Jan. 22, edition that Barrick Gold says it is exploring all options including the possible sale of its Lumwana mine in Zambia as the government considers increased taxes.
A Canadian Press dispatch to the Post reports that while conceding that the government is under pressure to increase revenue, chief operating officer Willem Jacobs said the changes would hit the mine's profitability.
"The proposed changes to taxes and royalties would imperil the mine's ability to sustain returns to all stakeholders," he said in a statement Monday.
Barrick said it continues to engage with Zambia about ways forward for the operation, including a potential partnership approach with an increased interest for the government in the mine's economic performance.
Lumwana produced 256 million pounds of copper in 2017 and had a carrying value of $849-million (U.S.) that year. Barrick said reports that it has already sold the mine were untrue, but that all options need to be considered given the conditions the mine faces. "Given the challenging conditions the mine was facing, all options would have to be considered," the company said in a statement.
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