Barrick losing money in Tanzanian misinvoicing row

The export ban placed on mining companies operating in Tanzania due to alleged misinvoicing is causing Barrick Gold subsidiary, Acacia Mining, losses of more than US$1 million in daily revenue.

Tanzania’s president, John Magufuli, imposed the ban in March while a recent audit of shipping containers loaded by Acacia found precious metals that had not been declared and that the value of the shipment had been very substantially understated (Trade-based Financial Crime, 14 June 2017).

Revised figures

Barrick says it may be forced to revise its full-year forecasts as a result of the dispute.

“Acacia operations impacted by the current ban on concentrate exports (Bulyanhulu and Buzwagi) account for approximately six per cent of Barrick’s 2017 gold production guidance,” the company said in a statement.

Acacia, in which Toronto-based Barrick holds a 63.9 per cent equity interest, is the biggest company involved in the row over alleged misinvoicing and tax evasion.

Denials

London-listed Acacia denies the allegations and says independent auditors examine and report its finances to international standards.

The miner says there are wide differences between Tanzania’s allegations and its independently verified data.



Categories: Trade Based Financial crimes News