African Barrick increases royalty voluntary

African Barrick Gold has voluntary agreed to pay additional one per cent royalty, follows a number of positive development especially on current gold price environment.

ABG, listed at Dar es Salaam Stock Exchange, says in a press statement issued yesterday, that the royalty is addition to the current 3 per cent rate stipulated in its MDA-- Mineral Development Agreements.

Commenting on the news, CEO Greg Hawkins said: “This decision to pay an additional voluntary royalty payment is an important step for ABG and one we have taken after careful consideration.

“As our results over the last two years have shown, the business is delivering strong financial returns given the strength in the gold price and it is important that our broader stakeholder base see the benefit of that.

We believe that the mining industry has a well-founded regulatory framework in Tanzania which the government has fully respected, and this initiative is reflective of that and will further strengthen our operational platform over the long term.”

The ABG focus on building stronger relationships has enabled it to address a number of legacy issues over the past year which will underpin the biggest gold miner in the country license to operate and further develop its operations.
 
In 2011, ABG made a direct contribution to Tanzania of USD 176 million in taxes borne and collected and spent a further USD 400 million with Tanzanian registered suppliers and contractors.
Source: tzexchange.blogspot.com



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