Barrick Gold Signs Historic Mining Deal with Tanzanian Government

SEATTLE (Scrap Monster): Canadian Barrick Gold Corp. reached a landmark mining agreement with the Tanzanian government. The deal, signed by Barrick CEO Mark Bristow and Tanzanian minerals minister Doto Biteko in a ceremony held in Dar es Salaam, is expected to redefine Barrick’s operation in the African country.

As per the terms of the deal, the country’s government will take stake in three operating gold mines- Bulyanhulu, North Mara and Buzwagi mines. The combined state holding in the three mines will be 16%. A new joint venture named ‘Twiga Minerals’ will manage the three mines.

In accordance with the settlement reached in October last year, Barrick would pay $300 million to the government in settlement of outstanding tax and other disputes. In return, the government had agreed to lift the export ban on concentrates.

ALSO READ: Canadian Gold Miner Expands Footprints Across the Americas

The deal is considered as a big win for the Tanzania government, as it will serve as a template for negotiation with other mining firms. The country in the process of re-negotiating mining agreements with existing companies, in seek of at least 16% stake in each large-scale mine. Moreover, the deal will ensure more income to the government from its natural resources.

Tanzania’s negotiation team was headed by Foreign Affairs Minister Palamagamba Kabudi.