African Barrick Gold ups royalty payment to Tanzania

Mining group African Barrick Gold has increased its royalty payment to the Tanzanian government by an additional voluntary one per cent on top of the three per cent rate stipulated in the firm's mineral development agreement.

The increase is the result of the current gold price as well as an indication of the company's commitment to Tanzania.

Chief Executive Officer 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.

Subscribe to MoneyWeek

Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE

Get 6 issues free

Sign up to Money Morning

Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter

Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter

Sign up

"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 firm said that the stability provided to the company by its relationship with the Tanzanian government has been instrumental in the development of the business.

The company was keen to emphasise its financial contributions to the surrounding area of its Tanzanian sites which are set to bring a number of benefits to these communities.

NR