B2 | REPORT ON BUSINESS I THE GLOBE AND MAIL | TUESDAY,AUGUST13, 2019

Barrick eyes sale of 50% stake in Australian mine

CEO says Australia’s sell its Massawa gold develop- based miner for more than two ment project in Senegal or team years. Northern Star and up with another company to de- In 2017, the Tanzanian govern- Evolution are ‘interested velop the site. As a demonstra- ment accused Acacia of US$200- parties’ in Kalgoorlie tion of his faith in the asset, he billion in tax fraud and banned it said Barrick would be willing to from exporting gold concentrate, take equity for Massawa if a buyer sidelining much of its produc- NIALL McGEE were to emerge. He named To- tion. In the aftermath, Tanzania MINING REPORTER ronto-based Teranga Gold Corp. refused to even negotiate with and Australia-based Resolute Acacia to end the fracas, with Bar- Mining as parties that may be in- rick – as its biggest shareholder – Barrick Gold Corp. is planning to terested in “working with us” on leading the negotiations. sell its 50-per-cent share in the Massawa. On Monday Mr. Bristow said Kalgoorlie mine in Australia and “If Barrick ultimately decides there is still a “great deal of work has identified two Australian to divest its assets in Senegal, we to be done” to rebuild relations companies as possible buyers. would take a look at it, as there with local stakeholders in Tanza- “There’s a lot of very interested could be operating synergies with nia, as Barrick tries to get a handle parties in that asset, whether it’s our flagship Sabodala gold mine,” on Acacia’s operations. Barrick is Northern Star or Evolution The Kalgoorlie mine in Australia, seen in August, 2015, is set to produce Teranga CEO Richard Young said also working to implement the [Mining]. Those mid-cap Aussie roughly 270,000 ounces of gold this year, drawing interest from potential in an e-mail to The Globe. “How- terms of a previously announced guys are doing extremely well,” buyers, according to Barrick Gold. KIM CHRISTIAN/EPA ever, we would be very price sen- tentative agreement to end the Barrick CEO Mark Bristow said in sitive given our current valua- tax dispute. It plans to pay a an interview after the release of Kalgoorlie, in western Austra- ing its share of Kalgoorlie to New- tion.” US$300-million fine to Tanzania the company’s second-quarter re- lia, is on track to produce about mont, but Mr. Bristow said New- Resolute did not respond to a and has agreed to a profit-sharing sults on Monday. 270,000 ounces of gold this year. mont has indicated it intends to request for comment. plan with the Tanzanian govern- Neither Northern Star nor Evo- In the second quarter, its all-in keep its options open. Newmont For the quarter ended June 30, ment pertaining to Acacia’s three lution responded to a request for sustaining cost was US$1,204 an may end up selling its stake as Barrick reported a net profit of mines in the country. For now, comment. ounce, making it among Barrick’s well if an attractive offer materi- US$194-million, compared with a though, Acacia’s operations re- After Barrick bought Randgold highest-cost mines. Barrick co- alizes for 100 per cent of the asset, US$94-million loss in the same main idled for the most part. Resources Ltd. for US$6-billion owns the asset alongside Nevada- he added. quarter in 2018. On an adjusted Acacia announced on Monday earlier this year, the company based Newmont Goldcorp Corp., “We would consider transac- basis, the company reported that Tanzania has allowed it to re- said it intended to divest about the world’s biggest gold producer. tions to consolidate or divest our earnings per share of US$0.09, in sume gold shipments from its US$1.5-billion in assets to concen- Newmont is the operator, mean- interest in [Kalgoorlie] under the line with analysts’ expectations. North Mara mine, but actual trate on its highest-returning as- ing Barrick has little influence in right valuation terms. Beyond Last month, Barrick reached mining remains on hold after the sets, such as its mines in Nevada running the mine. Mr. Bristow that we are not able to speculate,” an agreement to acquire the 36.1 site’s tailings dam was shut down and its massive Pueblo Viejo said Barrick would rather concen- Newmont spokesman Omar Jab- per cent of Acacia Mining PLC in July following allegations of mine in the Dominican Republic, trate on assets over which it has ara wrote in an e-mail to The that it doesn’t already own for environmental breaches. which needs about US$1-billion full control rather than being a Globe and Mail on Monday. US$428-million, paving the way in capital expenditure over the passive investor. Mr. Bristow also said on Mon- for an end to a geopolitical spat BARRICK (ABX) next few years. Barrick has also discussed sell- day that Barrick was prepared to that had engulfed the London- CLOSE: $23.80, DOWN 16¢

Enbridge affirms it followed rules around Line 5 replacement GLOBAL ECONOMIC OUTLOOK WEAKENS AMID CHINA-U.S. SPAT, GERMANY’S IFO SAYS MEGAN DEVLIN struck the pipe in 2018, damaging but not to the Detroit airport, picks up oil from puncturing it. northern Michigan producers and carries Last week, the Associated Press also re- propane used to heat 65 per cent of homes BERLIN The economic outlook Enbridge Inc. insists the plan to replace a ported that erosion has created a gap be- in Michigan’s Upper Peninsula. has deteriorated worldwide as part of its Line 5 crude oil pipeline ap- tween Line 5 and the lake bed that’s wider Mr. Duffy said it would take about 2,500 the trade dispute between the proved by Michigan’s previous state gov- than is allowed under Enbridge’s land-use tanker trucks a day driving over the Straits United States and China ramps ernment was constitutional, as the compa- agreement with the state. Ms. Nessel said of Mackinac bridge to deliver enough oil to up, a survey showed on Monday. ny tries to fend off the new administra- that was another reason to get the pipeline meet Michigan’s needs if the pipeline were Germany’s IFO economic tion’s attempts to shut down an underwa- out of the water. shut down before a replacement section institute said its quarterly survey ter section of the pipeline. Negotiations broke down earlier this was ready. among nearly 1,200 experts in Upholding the agreement would allow summer between Enbridge and state offi- Ms. Nessel’s office declined to comment more than 110 countries showed Enbridge to bore a tunnel underneath the cials who were trying to re- for this story, citing pending that its measures for current Straits of Mackinac to house a new section ach a deal for taking the ex- litigation. However, the At- conditions and economic expec- of pipe, replacing the section that’s under- isting pipeline out of service. The Calgary-based torney-General plans to file a tations have both worsened in water. After that, Enbridge filed liti- further response on Thurs- the third quarter. The state’s Attorney-General, Dana Nes- gation with the Court of energy transportation day. “The experts expect signif- sel, had argued the tunnel agreement Claims to have its previous company has said During an Aug. 2 earnings icantly weaker growth in world wasn’t properly surmised by its title, mak- tunnel-project agreement it could complete call, Enbridge president and trade,” IFO president Clemens ing it unconstitutional. upheld and Michigan sued the replacement chief executive Al Monaco Fuest said, adding that trade In an Aug. 1 court filing, Enbridge said Enbridge to have the exist- told investors he hopes the expectations hit the lowest since the legislation approving the tunnel pro- ing pipeline shut down. tunnel by 2024, company could reach “posi- the beginning of the tariff con- ject followed the rules because the docu- The Calgary-based energy a timeline that tive outcomes … in the near flict last year. “Respondents also ment’s title adequately reflected its con- transportation company has Michigan’s term” regarding Line 5’s legal expect weaker private consump- tents, and it gave the public and Michigan’s said it could complete the re- administration troubles. tion, lower investment activity, legislature fair notice of what to expect placement tunnel by 2024, a “We believe we have a and declining short- and long- from the project. timeline that Michigan’s ad- thinks is too long. strong case,” Mr. Duffy said, term interest rates.” “We believe that the most effective path ministration thinks is too adding the court process The U.S. and China are vital forward is to work expeditiously toward long. The state’s Governor, Gretchen needs to play out. export destinations for German permitting and construction of the tunnel, Whitmer, wants the section in the straits In the meantime, Enbridge is contin- manufacturers, so the tariff rather than through the courts,” Enbridge out of the water within two years. uing with US$40-million in preconstruc- dispute between the world’s two spokesperson Ryan Duffy said in a state- But Mr. Duffy said there’s no way a re- tion tunnel work they already have per- largest economies is having a ment summarizing the company’s filing. placement could be complete within two mits for. Lately, Enbridge has been using a large impact on German goods The section of pipeline in the straits has years, and that shutting down the pipeline ship called the Highland Eagle to drill for producers. The German econo- been the subject of concern for environ- in the meantime would cause “a lot of dis- rock samples that will tell engineers how my, Europe’s largest, is widely mentalists and Michigan’s Democrat gov- ruption.” to design the tunnel that could eventually expected to have contracted in ernment that took power in January. Line 5 transports 540,000 barrels a day lie 30 metres underground. the second quarter, and senti- They’re worried about the risk of an oil of crude oil from Alberta to refineries in ment indicators suggest hardly spill in the Great Lakes and the concerns Sarnia, Ont., passing through Wisconsin ENBRIDGE (ENB) any improvement in the third. were amplified when a boat’s anchor and Michigan en route. It also delivers fuel CLOSE: $44.62, DOWN 5¢ REUTERS

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