What you need to know about Barrick Gold’s deal with Tanzania over Acacia Mining

News

How Amazon Sellers Are Supplying Hospitals And First Responders

Amid massive shortages, Amazon is only allowing hospitals and government agencies to order items like N95 masks and COVID-19 diagnostic kits. Now, third-party sellers on Amazon are stepping up to help, and repositioning their small businesses to surv

Why business should not throw in the towel in the face of COVID-19

“I would like to appeal to all large businesses not to resort to force majeure and stop paying their suppliers and rental commitments , as such practice has a domino effect on all other businesses dependent on that chain,”

SA extends lockdown by two weeks until end April

South Africa's President Cyril Ramaphosa on Thursday evening extended the country's lockdown by two weeks until the...

(Reuters) – Barrick Gold Corp said it had reached a deal to settle a long-running tax dispute between Tanzania and mining group Acacia, which Barrick bought in a $1.2 billion transaction approved by a British court last month.

The tax deal includes the payment of $300 million to settle outstanding tax and other disputes, the lifting of a concentrate export ban, and the sharing of future economic benefits from mines on a 50-50 basis, Barrick said in a statement on Sunday.

“Barrick is definitely back in Tanzania,” Barrick president and chief executive Mark Bristow told reporters in Dar es Salaam, Tanzania’s commercial capital on Sunday.

“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 Bristow.

A new operating company named Twiga Minerals will be formed to manage the Bulyanhulu, North Mara and Buzwagi mines after a review by Tanzania’s attorney general, the statement added.

Under the agreement, the Tanzanian government will also buy a 16% shareholding in each of the mines.

“This company has been registered in Tanzania and it will be headquartered in Mwanza, Tanzania,” Palamagamba Kabudi, Tanzania’s foreign minister said.

Kabudi, speaking at the news conference, said the deal marked a new partnership with Barrick under the new Twiga Minerals name.

“Twiga will make our new partnership an example to other mining ventures who are investing in Tanzania and who want to invest in Tanzania.”

He said details of the deal would be submitted to the country’s attorney general for review and he expected that to be completed by November 15.

An Africa-focused international dispute resolution framework will also be established as part of the agreement, Barrick said.

The deal comes days after the Canadian company fell short of analysts’ estimates for third-quarter gold production due to low output at its North Mara mine in Tanzania.

(Reporting by Sabahatjahan Contractor in Bengaluru and Nuzulack Dausen in Dar es Salaam Editing by David Holmes and Jane Merriman)

- Advertisement -
- Advertisement -

Featured

COVID-19: Moody’s downgrades Zambia from stable to negative

Africa will tread a tough road ahead as ratings agencies throw its iron fists upon African countries amid the COVID-19 crisis and economic disruptions impact private sector activity in Sub- Saharan Africa. Ridle Markus, Africa Strategist at Absa Corporate and Investment Banking joins CNBC Africa for more.

Subscribe to our newsletter

Sign up for free newsletters and get more CNBC AFRICA delivered to your inbox

COVID-19: Trump hold on finances would hurt our work in Africa – WHO.

"If that decision is made it would severely impact our work here in Africa,” says Moeti.

Update on Rupert family’s R1bn COVID-19 fund

This week Johann Rupert’s R1billion Sukuma fund had to close doors on desperate small businesses wanting help to fight the impact of COVID-19 lockdowns.

World Bank considers debt relief for Africa to fight COVID-19

The World Bank expects COVID-19 to cost Sub-Saharan Africa up to $79 billion in lost output in 2020, plunging the region into its first recession in a quarter of a century. World Bank’s Chief Economist for Africa, Albert Zeufack joins CNBC Africa for more.

Why China will be least hit by capital exodus from emerging markets

The COVID-19 shock has fuelled the biggest capital outflows from emerging markets on record in the first quarter, and the situation is unlikely to improve for the rest of the year. That’s according to research from the Institute of International Finance. Elina Ribakova, Deputy Chief Economist from the (IFF) Institute of International Finance joins CNBC Africa for more.
- Advertisement -

More Articles Like This

- Advertisement -