Talks to settle Tanzania gold fraud dispute

2017-06-14 19:18
iStock

iStock

Multimedia   ·   User Galleries   ·   News in Pictures Send us your pictures  ·  Send us your stories

Dar es Salaam - Tanzania has agreed to negotiations with Canadian mining giant Barrick Gold which it accuses of operating illegally and evading taxes, a government statement said Wednesday.

Barrick is the majority shareholder in London-listed Acacia Mining which a presidential commission report said this week was not registered to operate in Tanzania and had failed to pay taxes worth billions of dollars. Barrick refuted the allegations.

On Wednesday, its executive chairperson John Thornton flew to Tanzania to meet with President John Magufuli after news of the allegations caused the company's share price to fall.

Barrick "is ready to discuss with the Tanzanian government the reimbursement of money lost by Tanzania as a result of the company's operations in the country," the presidency said in a statement, without giving further details.

According to the statement, Thornton is "ready to enter into a dialogue with the Tanzanian government in the interests of both parties and pay what must be repaid to Tanzania."

Magufuli had accused the company of "stealing from us" in a live televised address this week, but welcomed the proposed discussions.

He said a special committee would be appointed, "with a view to an agreement on the reimbursement of the money due to Tanzania and how the company will now conduct its operations in the interests of both parties."

On Monday, a government commission said fraud in the mining sector had cost Tanzania $84bn over 19 years and blamed foreign companies for failing to declare revenues.

Tanzania is rich in minerals and ranks fourth among gold producers on the continent. Gold is the country's leading mineral export and one of its primary sources of revenue.

Tanzania also exports copper, nickel, silver, diamonds and other precious stones such as tanzanite.

In March, Tanzania said it was banning exports of non-processed ore in a bid to promote the development of the mineral processing sector, create new jobs locally and increase revenues generated by the sector.

The statement on Wednesday also said Thornton had agreed that Barrick would "cooperate" in the construction of a smelter in Tanzania.

Last month, Magufuli dismissed the country's mines minister after receiving a report from geologists that said mining companies had underestimated their mineral exports in order to pay lower taxes.

The report had said that poor management of the sector meant officials were not able to tell how much or what kind of ores were being exported.


Read more on:    john magufuli  |  tanzania  |  east africa

Join the conversation!

24.com encourages commentary submitted via MyNews24. Contributions of 200 words or more will be considered for publication.

We reserve editorial discretion to decide what will be published.
Read our comments policy for guidelines on contributions.
NEXT ON NEWS24X

Inside News24

 
/News
 

8 great natural remedies for your pet

Tips and tricks to cure your pet’s itches and coughs, naturally.

 
 

Paws

Buying a puppy? Don’t get scammed!
WATCH: These funny animal videos will make you LOL!
11 animals before and after they were adopted from shelters
Competition pet grooming – creative or too extreme?
Traffic Alerts
There are new stories on the homepage. Click here to see them.
 
English
Afrikaans
isiZulu

Hello 

Create Profile

Creating your profile will enable you to submit photos and stories to get published on News24.


Please provide a username for your profile page:

This username must be unique, cannot be edited and will be used in the URL to your profile page across the entire 24.com network.

Settings

Location Settings

News24 allows you to edit the display of certain components based on a location. If you wish to personalise the page based on your preferences, please select a location for each component and click "Submit" in order for the changes to take affect.




Facebook Sign-In

Hi News addict,

Join the News24 Community to be involved in breaking the news.

Log in with Facebook to comment and personalise news, weather and listings.