African Barrick is history, changes name to Acacia Mining
The London-listed miner tried for years to establish a more independent identity from parent Barrick Gold, and the name change seems to emphasize that.
Barrick Gold’s (TSX, NYSE: ABX) subsidiary, African Barrick,  (LON:ACA), a company still focused on the African continent and 64% owned by the Canadian gold giant.
Unveiling its long-term strategy, Acacia said one of its first moves will be moving its operations at North Mara — a constant target of small-scale gold looting by locals—underground, which should improve security and extend the life of the mine, .
The project is expected to produce 450,000 ounces of gold over a five-year mine life at an all-in sustaining cost (AISC) of under $750 per ounce.
Buys new project
The renamed gold miner also unveiled it had (TSX-V: SWA) to buy into its Burkina Faso field. The agreement could see Acacia acquire up to 70% of the Sarama’s Houndé project.
The mid-cap gold miner, which spun off from Barrick Gold in 2010, has been , as it has been hit hard by low bullion prices and higher costs. At the same time, it has tried to and the name change seems to be a way to emphasize such sought-after autonomy.
Last year Barrick Gold failed to complete a potential deal to sell the Tanzania-focused company to a Chinese buyer, but did sell down part of its holding in March.
An acacia tree is hardy and resilient and thrives in tough environments. These certainly sounds like the attributes a gold company would want in today’s market condition, with prices hitting four-year lows.
Other than North Mara, Acacia has two other producing mines in northwest Tanzania – Bulyanhulu and Buzwagi. It also has exploration projects in Tanzania, Kenya and Burkina Faso.
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3 Comments
thepowell
I like how you mention “small-scale looting by locals” and not, y’know, “large-scale human rights violations by Barrick”.
LAMB
Just a note to “thepowell” – unless you have been there you cannot imagine how these people work – always at night and placing themselves in DANGER, even though a large number from the village is employed there earning substantially more than their neighbors.
Believe me, I was there and I saw what they were doing – stealing diesel fuel, breaking into residences, etc. There were NO HUMAN RIGHTS violations when I was there. Just WHAT do YOU call Human Rights violations – employment? WHAT???
golddigger69
Another company for Brad Gordon to run into the ground