21 Oct Barrick finally reaches agreement with Tanzania over Acacia Mining tax dispute
Barrick Gold Corp has announced a breakthrough deal with the Tanzanian government over a long-running tax dispute with its subsidiary company Acacia Mining.
The tax deal will see Barrick pay a US$300 million settlement fee to Tanzania, who will in turn lift a concentrate export ban on the North Mara, Bulyanhulu and Buzwagi gold mines. The parties also pledged to share future economic benefits from the operations on a 50-50 basis.
In addition, a new operating company named Twiga Minerals will be formed to manage the three mines, with the Tanzanian government receiving a 16% stake in the renamed firm. The deal must still be approved by Tanzania’s attorney general.
“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,” said Barrick CEO Mark Bristow.
“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.”
In July, Barrick agreed a $1.2 billion deal to buy out the remaining shares it didn’t own in Acacia in order to resolve the Tanzanian dispute, which dates back to 2017 when President John Magufuli accused Acacia of misreporting revenues, culminating in a $190 billion tax bill.