JOHANNESBURG (Reuters) &#8211; Barrick Gold’s Kibali gold mining joint venture in Democratic Republic of Congo will be able to get $500 million out of the country very soon, CEO Mark Bristow told Reuters on Monday.



The gold miner has been in discussions with Congo’s government over how to get the money out of the country for months. A resolution was close in January, but then the COVID-19 pandemic hit, Bristow said in a telephone interview.



Bristow said he expected the cash to be cleared for exit “very soon”, declining to give a specific timeline, after intensive discussions with the central bank, the mines minister, and the prime minister.



Under Congo’s 2018 mining code, miners must repatriate 60% of revenue from mineral sales back into the Congo, to help develop Congo’s economy.



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The $500 million is the excess left over after Kibali repatriated 60% of revenue and paid all its in-country expenses, Bristow said.



Barrick needs the $500 million in order to pay back loans and dividends, Bristow said. AngloGold Ashanti, which owns 45% of Kibali, is entitled to half the money after dividends are paid, he said.



AngloGold Ashanti declined to comment, referring Reuters back to Barrick.



In May, Bristow had said the issue of the $500 million “keeps us awake at night”.



Barrick’s push to get the money out comes as Congo’s economy is under significant strain from the pandemic, with foreign currency reserves shrinking and mining companies taking longer to repatriate the 60% of mineral sales.



“Unfortunately, we have noted that repatriation of the 60% is currently erratic,” mines minister Willy Kitobo Samsoni told Reuters, adding he had warned mining companies to repatriate that capital immediately, or risk sanctions as set out in the mining code.



Delayed repatriation of funds is among the pressures facing the mining sector, a critical contributor to Congo’s economy, Samsoni said on Saturday

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Kibali’s $500 million will be cleared to leave Congo ‘very soon’: Barrick CEO

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Copper production in the Democratic Republic of Congo (DRC) increased by 17 per cent year-on-year to 1.433 million tons in 2019. It is projected that by 2027, demand for copper will surge by 900 per cent. How is DRC positioning itself to increase supply and satisfy this demand? Still in DRC, Barrick Gold announced that it would not approve Congolese parastatal, Société Minière de Kilo-Moto’s (SOKIMO) intended sale of its 10 per cent interest in the Kibali Gold Mine to AJN Resources. Yves Kabongo, Vice Chairman of Makutano Foundation joins CNBC Africa for more.

Here’s what makes DRC mining sector a strategic economic driver for the country

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Between a new deal being signed with Canadian company Barrick Gold, speculation about a possible travel ban and this country&#8217;s shilling losing ground since the beginning of the year, Tanzania&#8217;s markets seem to be going through the wringer this week. Bankable Partner, Ivan Tarimo joins CNBC Africa for more.

Tanzania

Tanzania, Canada’s Barrick Gold sign deal to settle tax dispute

(Reuters) &#8211; 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.



&#8220;Barrick is definitely back in Tanzania,&#8221; Barrick president and chief executive Mark Bristow told reporters in Dar es Salaam, Tanzania’s commercial capital on Sunday.



&#8220;A true partnership can only be described when you have 50/50 and our joint venture with the government of Tanzania is exactly that &#8211; a committed partnership to develop Tanzania’s gold assets for the benefit of all stakeholders,&#8221; 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&#8217;s attorney general, the statement added.



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



&#8220;This company has been registered in Tanzania and it will be headquartered in Mwanza, Tanzania,&#8221; 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.



&#8220;Twiga will make our new partnership an example to other mining ventures who are investing in Tanzania and who want to invest in Tanzania.&#8221;



He said details of the deal would be submitted to the country&#8217;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&#8217; 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)

Barrick Gold

Kibali’s $500 million will be cleared to leave Congo ‘very soon’: Barrick CEO

Here’s what makes DRC mining sector a strategic economic driver for the country

Tanzania, Canada’s Barrick Gold sign deal to settle tax dispute

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

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Barrick Gold

Kibali’s $500 million will be cleared to leave Congo ‘very soon’: Barrick CEO

Here’s what makes DRC mining sector a strategic economic driver for the country

Tanzania, Canada’s Barrick Gold sign deal to settle tax dispute

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

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