This archive report was first published on 23 October 2019.
Published on October 23, 2019, Barrick Gold, the world's largest gold mining company, has announced it will resume its operations in Tanzania after agreeing to pay $300 million in tax disputes.
The agreement between the firm and the government will facilitate the lifting of the ban on concentrate export, with benefits split on a 50-50 basis between Barrick and Tanzania Government.
The new arrangement brings an end to a long-standing dispute between Tanzania and the mining firm, which began in March 2017 when the government banned the export of concentrates over underpaid taxes by mining companies.
Tanzania alleged that mining companies owe over $50 billion in underpaid taxes for the past 20 years, leading the government to refuse any agreements related to exports of commodities extracted in the country by Acacia.
However, under the new agreement, the Tanzania government will buy 16% of the shareholding of each mine, and Barrick Gold will form a new company, Twiga Minerals Corp, to manage operations of Bulyanhulu, North Mara, and Buzwagi mines.
“A true partnership can only be described when you have 50/50, and our joint venture with the government of Tanzania is exactly that — a committed partnership to develop Tanzania’s gold assets for the benefit of all stakeholders,” said Mark Bristow, Barrick President, and CEO.
