Barrick to restart mining in Tanzania following $300m agreement

21 October 2019

Barrick Gold Corp


Barrick Gold Corp has announced the end to its long-running dispute with the Government of Tanzania with the payment of a $300m to settle all outstanding tax and other disputes and the lifting of the concentrate export ban. Additionally, the government will be given a 16% stake in Barrick’s renamed company in Tanzania, Twiga Minerals, and will profit share in this joint venture on a 50-50 basis. The company will manage the Bulyanhulu, Buzwagi and North Mara mines.

The dispute dates back to 2017, when Barrick subsidiary, Acacia, which owned the three mines which Barrick purchased this year, was hit with a tax bill for $190bn following Tanzania introducing a ban on the export of unprocessed metals.

Additionally, the settlement will also see the establishment of a unique, Africa-focused international dispute resolution framework.

Commenting on the agreement following a meeting with the chairman of the Negotiating Committee of the Government of Tanzania, Prof Palamagamba Kabudi, Mark Bristow, President and CEO of Barrick stated: “Rebuilding these operations after three years of value destruction will require a lot of work, but the progress we’ve already made will be greatly accelerated by this agreement.  Twiga, which will give the government full visibility of and participation in operating decisions made for and by the mines, represents our new partnership not only in spirit but also in practice.”

Mr Bristow also commented that this agreement would introduce a new era of productive partnership with the Government of Tanzania and would ensure that Tanzania and its people would share fully in the value created by the mines they hosted.

The final details of the agreement will be submitted to the Tanzanian Attorney General for review and legislation.

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About Barrick Gold
Barrick has mining operations and projects in 15 countries, including Argentina, Australia, Canada, Chile, Côte d’Ivoire, Democratic Republic of Congo, Dominican Republic, Mali, Papua New Guinea, Peru, Saudi Arabia, Senegal, United States, and Zambia.
The Company’s shares trade on the New York Stock Exchange under the symbol GOLD, and on the Toronto Stock Exchange under the symbol ABX.

Amounts given in US Dollars.

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MiningIR hosts a variety of articles from a range of sources. Our content, while interesting, should not be considered as formal financial advice. Always seek professional guidance and consult a range of sources before investing.
James Hyland, MiningIR