DAR ES SALAAM (Reuters) – Canada’s Barrick Gold Corp ( ABX.TO ) signed a deal with Tanzania on Friday in which the government will take stakes in three gold mines, ending a long-running tax dispute and setting a template for negotiations with other firms. FILE PHOTO: A visitor passes a Barrick Gold mining company display during the Prospectors and Developers Association of Canada (PDAC) annual convention in Toronto, Ontario, Canada March 4, 2019. REUTERS/Chris Helgren/File Photo
It was signed by Barrick CEO Mark Bristow and Tanzanian minerals minister Doto Biteko at a ceremony in the commercial capital, Dar es Salaam.
It follows an announcement by the two sides in October in which they agreed to a payment of $300 million to settle outstanding tax and other disputes, the lifting of an export ban on concentrates and the sharing of future economic benefits from mines.
South Africa-born Bristow, describing the dispute as a “long safari” since it emerged in 2017, struck a conciliatory tone in a speech at the ceremony broadcast on state TV. Safari means “journey” in Swahili.
“Many people said your criticism will chase away investors … what it’s done is challenge the mining industry and all of us to embark on something where we win together or lose together,” Bristow said to applause.
Casting himself as a “Zulu boy” born in Zululand, Bristow called it a “historical day” for Africa.
“President, what I am here to do today is to offer you the hand of Barrick,” the CEO added, moving from the lectern to shake President John Magufuli’s hand.
The company said it had budgeted $50 million for brown and greenfield exploration in Tanzania in 2020.
“I thank God for the success of this agreement, said Magufuli, who has made a point of extracting more income from natural resources and described the negotiations as a clash between a cow and a rabbit.
He said confiscated containers of gold and copper concentrate could now be exported to the benefit of Twiga Minerals, a new joint venture set up to manage the Bulyanhulu, North Mara and Buzwagi mines.
“Twiga Minerals represents a structure which allows the government and the people of Tanzania to be involved in the decision-making of everything that we do together,” Bristow said.Foreign Affairs Minister Palamagamba Kabudi, who led Tanzania’s negotiating team, said Tanzania now owns 16% undiluted shares in Twiga Minerals, as well as a 16% stake in each of the Barrick mines.“We almost lost […]