TORONTO — Barrick Gold Corp. has reached a deal with the government of Tanzania that will see the gold miner pay US$300 million to settle all outstanding tax and other disputes over its mines in the African country.
The company and Tanzania will also share the future economic benefits from the mines on an equal basis and create a dispute resolution framework.
Under the agreement, a new operating company called Twiga Minerals Corp. has been formed to manage the Bulyanhulu, North Mara and Buzwagi mines.
Barrick says Tanzania will acquire a 16 per cent stake in each of the mines and will receive its half of the economic benefits from taxes, royalties, clearing fees and participation in all cash distributions made by the mines and Twiga.
The Toronto-based gold miner took over the management of the mines after buying the stake in Acacia Mining that it did not already own earlier this year.
Acacia and Tanzania had been embroiled in a dispute that started in 2017 when the country handed the African gold miner a US$190-billion tax bill.
This report by The Canadian Press was first published Oct. 21, 2019.
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