The Globe and Mail reports in its Saturday edition that Barrick Gold's incoming chief executive officer said that he wants to pull together Tanzania's mining industry to tackle a "desperate" tax dispute that has snared several companies, including the firm's Acacia Mining unit.
A Reuters dispatch to The Globe says that in an increasingly acrimonious conflict that has lasted almost two years, the government has torn up mining contracts, hiked taxes and royalties, and banned raw minerals exports.
President John Magufuli, nicknamed the Bulldozer, swept to power in 2015 pledging to secure a bigger share of resource wealth and cut corruption. Acacia was later handed a $190-billion (U.S.) tax bill for underreporting output.
The miner now faces dozens of criminal charges, from tax evasion to money laundering, with three employees arrested on related accusations. Randgold founder Mark Bristow, Barrick's new CEO after its $6.1-billion acquisition of Randgold closes on Jan. 1, says that fixing Barrick's mounting problem in Tanzania could require a collective strategy that has not been used there before.
An official at another Tanzanian mining company said the industry may "not want to inherit" Acacia's issues.
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