- AustraliaNorth AmericaWorld
Investing News NetworkYour trusted source for investing success
- Lithium Outlook
- Oil and Gas Outlook
- Gold Outlook Report
- Uranium Outlook
- Rare Earths Outlook
- All Outlook Reports
- Top Generative AI Stocks
- Top EV Stocks
- Biggest AI Companies
- Biggest Blockchain Stocks
- Biggest Cryptocurrency-mining Stocks
- Biggest Cybersecurity Companies
- Biggest Robotics Companies
- Biggest Social Media Companies
- Biggest Technology ETFs
- Artificial Intellgience ETFs
- Robotics ETFs
- Canadian Cryptocurrency ETFs
- Artificial Intelligence Outlook
- EV Outlook
- Cleantech Outlook
- Crypto Outlook
- Tech Outlook
- All Market Outlook Reports
- Cannabis Weekly Round-Up
- Top Alzheimer's Treatment Stocks
- Top Biotech Stocks
- Top Plant-based Food Stocks
- Biggest Cannabis Stocks
- Biggest Pharma Stocks
- Longevity Stocks to Watch
- Psychedelics Stocks to Watch
- Top Cobalt Stocks
- Small Biotech ETFs to Watch
- Top Life Science ETFs
- Biggest Pharmaceutical ETFs
- Life Science Outlook
- Biotech Outlook
- Cannabis Outlook
- Pharma Outlook
- Psychedelics Outlook
- All Market Outlook Reports
Barrick Weighs Options for Copper Mine as Zambia Tax Hikes Loom
Barrick has once again found itself involved in an African tax dispute, with the latest affecting its Lumwana copper mine.
Barrick Gold (TSX:ABX,NYSE:GOLD) has begun considering various options for its Lumwana copper mine, which includes selling the asset, the company announced on Monday (January 21).
The miner began fleshing out arrangements for the mine when concerns surrounding potential tax hikes in Zambia grew.
āThe proposed changes to taxes and royalties would imperil the mineās ability to sustain returns to all stakeholders, such as the significant contribution of more than US$3.3 billion it has already made to the Zambian economy over the past 10 years,ā said Willem Jacobs, CEO at Barrick in Africa and the Middle East.
While Barrick had previously stated that its copper mine was strategic and it would not be selling the asset, the miner has now noted that the āchallenging conditionsā which Lumwanafaces have resulted in āall optionsā being considered.
āLumwana has made detailed proposals to the government about a partnership approach which would provide the state with an improved share in the economics of Lumwana without overburdening the mine,ā stated Jacobs.
āFinding a win-win solution between the industry and government would without doubt increase investor confidence in Zambia and safeguard the long-term prospects of its mining industry,ā he added.
This is not the first African tax dispute that Barrick has been involved with in recent years. At the beginning of this year, the miner began fleshing out options for its stake in gold producer Acacia Mining (LSE:ACA), as it has spent almost two-years in the middle of a tax dispute in Tanzania, where its government has accused the company of US$200 billion in tax fraud.
āThis has been a very complex and challenging situation where no one has won. Itās untenable and will be resolved,ā said Mark Bristow, CEO, in January.
Barrick revealed that it could purchase the remaining shares of Acacia, or it could split the company up, among other options.
āThis conflict has destroyed lots of value. We need to make sure thereās enough value to work out a solution that various interested and affected parties get something thatās fair and proper for them,ā he said, adding that the company would provide more information during the second week of February.
As of 4:01 p.m. EST, Barrick was up 1.6 percent, trading at C$15.89..
Donāt forget to follow us @INN_Resource for real-time news updates!
Securities Disclosure: I, Nicole Rashotte, hold no direct investment interest in any company mentioned in this article.Ā
Latest News
Investing News Network websites or approved third-party tools use cookies. Please refer to theĀ cookie policy for collected data, privacy and GDPR compliance. By continuing to browse the site, you agree to our use of cookies.Ā