Barrick Gold, Tanzania Strike Partnership Deal
October 19 2017 - 11:24AM
Dow Jones News
By Jacquie McNish
TORONTO -- Barrick Gold Corp. said its African subsidiary will
make a $300 million payment to the government of Tanzania as part
of an agreement to resolve tax and revenue sharing disputes over
its three gold mines in the country.
The Toronto-based mining company said its majority controlled
Acacia Mining PLC has struck a framework for a new partnership that
will hand the African government 50% of the economic benefits of
its mining operations. Further details of the agreement weren't
disclosed.
Acacia, the biggest gold miner in the country with $1 billion in
annual revenue, was served with a $190 billion bill earlier this
year for what Tanzanian authorities have said were unpaid taxes,
penalties and interest accumulated over the past 17 years.
Tanzania banned exports from two of Acacia's mines in March
after the government alleged it found 10 times more gold in the
company's export containers that in declared to Tanzanian
authorities. Acacia disputed the claim
The aggressive actions by Tanzania President John Magufuli, who
earlier this year declared an "economic war" on foreign miners,
prompted some companies to cease or scale back mining operations in
the country.
The agreement was signed in the Tanzanian city of Dar es Salaam
on Thursday morning following a meeting with Barrick Executive
Chairman John Thornton and Mr. Magufuli.
"We have developed a framework for a modern, 21st century
partnership that should ensure Acacia's operations generate
sustainable benefits and mutual prosperity for the people of
Tanzania, as well as for the owners of Barrick and Acacia," Mr.
Thornton said in a statement.
Write to Jacquie McNish at Jacquie.McNish@wsj.com
(END) Dow Jones Newswires
October 19, 2017 11:09 ET (15:09 GMT)
Copyright (c) 2017 Dow Jones & Company, Inc.
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