TORONTO - A subsidiary of Toronto-based Barrick Gold Corp. (ABX.TO) says gold production at its Tanzanian operations plunged 45 per cent last quarter as it grappled with export restrictions from the country.
London-based miner Acacia Mining, owned 64 per cent by Barrick, says the drop in production resulted from reduced operations at its Bulyanhulu mine and producing mostly from lower-grade stockpiles at its Buzwagi mine.
Production totalled 120,981 ounces for the quarter ending March 31, down from the 219,670 ounces the company produced last year.
Acacia reduced production at both mines after the Tanzanian government imposed export restrictions on gold and copper, while the company is also still facing a potential $240-billion tax bill from government.
Barrick Gold said last October that it had negotiated a deal with the Tanzanian government that would include profit sharing and a $380 million goodwill payment, but discussions on a potential resolution continue.
The company's production was in line with the lowered guidance it posted earlier this year, when it announced an $815 million impairment charge on the complications.