Bloomberg: Barrick Denies Report It Will Quit Tanzania Amid High Costs

Posted at 3:37 PM (CST) by & filed under General Editorial.

Barrick Denies Report It Will Quit Tanzania Amid High Costs
By Stewart Bailey

Dec. 5 (Bloomberg) — Barrick Gold Corp., the world’s biggest gold producer, denied a news report that it is considering withdrawing from Tanzania because of high operating costs.

The company has invested $1.5 billion in the African country, is in the final phases of building its Buzwagi mine and “has no intention of pulling out of Tanzania,” Vince Borg, a Barrick spokesman, said today in a telephone interview from Toronto, where the company is based.

Earlier today, Dar es Salaam-based IPP Media cited Gareth Taylor, Barrick’s vice president for Africa, as saying that poor infrastructure in Tanzania made operations in the country unprofitable and could force the company to cease doing business there.

“Barrick has been and will remain committed to Tanzania,” Borg said. The company will work with the government to ensure the country’s legislation remains “competitive with other jurisdictions so that Tanzanians can continue to benefit from mining.”

Barrick fell C$2.51, or 7.6 percent, to C$30.59 as of 10:07 a.m. in Toronto Stock Exchange trading. The shares dropped 21 percent this year through yesterday.