Barrick explores sale of Zambian copper mine as government looks to boost taxes

Barrick explores sale of Zambian copper mine as government looks to boost taxes
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TORONTO — Barrick Gold Corp. says it’s exploring all options including the possible sale of its Lumwana mine in Zambia as the government considers increased taxes.

It says the country’s proposed changes to taxes and royalties on the mining industry would threaten the mine’s ability to sustain returns to all stakeholders.

The Toronto-headquartered company says it continues to engage with Zambia about ways forward for the operation, including a potential partnership approach with an increased stake for the government in the mine’s economic performance.

Barrick says reports that it has already sold the mine were untrue, but that all options need to be considered given the conditions the mine faces.

The company, which completed its takeover of Africa-focused Randgold Resources at the start of the year, said it plans to divest some assets as part of the deal.

Barrick is also embroiled in a tax dispute with the government of Tanzania, which handed the company’s Acacia Mining subsidiary with a US$190-billion tax bill in 2017.

Companies in this story: (TSX:ABX)

The Canadian Press

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