China National Gold withdraws bid for African Barrick

China National Gold Group’s negotiations to acquire a controlling stake in Tanzania’s biggest gold miner, African Barrick Gold (ABG.LON, 33A.FRA), have failed, prompting the African firm to launch a review of its operations, The Wall Street Journal reported. The negotiations fell apart after the Chinese firm and ABG’s owner, Barrick Gold (ABX.NYSE, ABX.TSE, ABR.FRA), could not agree on a price for the 73.9% share in ABG, said Greg Hawkins, ABG’s chief executive. The two sides also failed to reach a compromise on Chinese demands that Barrick indemnify them for risks of change in Tanzania’s capital-gains-taxation system. The development follows years of operational difficulties and falling output for ABG. Hawkins said the firm has commenced a full review of business operations to increase cash flow from its assets. ABG’s share price fell 21% to 3.52GBP (US$5.67) a share at the close of trading at the London stock exchange on Wednesday.