This archive report was first published on 29 July 2019.
On July 29, 2019, Canadian miner Barrick Gold Corp proposed a plan that could reverse some of the gains Tanzania is seeking in a deal with the embattled company, Acacia Mining Plc.
The plan, outlined in a Framework Agreement with the Government of Tanzania, seeks to have mining companies under no obligation to establish gold refining or concentrate smelting facilities in the country.
According to the agreement, there is no obligation on the part of the TMCs (Tanzania mining companies) to establish beneficiation facilities in Tanzania, including gold refining or concentrate smelting.
Tanzania imposed an export ban on gold and copper concentrates in 2017 to curb smuggling and tax evasion.
President John Magufuli has ordered Mining Minister Dotto Biteko and his team to urgently work on the plan, which includes the construction of a smelter in the country to boost the benefits Tanzania gets from its natural resources.
Mr. Biteko confirmed that the government had issued a licence for building the smelter and that two licences had been granted to Chinese companies for a refinery and smelting.
However, the firms that have shown interest in investing want assurance of availability of gold and copper concentrates for smelting, and Barrick wants unfettered rights to export minerals until refining and smelting are available in Tanzania.
Acacia's Bulyanhulu and Buzwagi mines produce around 50,000 tonnes of gold/copper concentrate per year, but observers say that lifting the export ban will leave the envisaged smelter with limited concentrates.
Government spokesperson Dr. Hassan Abbas stated that the discussions with Barrick on the proposals had not been finalised and that the government's aim was to 'cut all ties' with Acacia Mining and work with 'only Barrick' on the implementation of the 2017 deal.
