Canada-based Barrick Gold and the Tanzanian Government have agreed on a framework for creating a new partnership for operations of the company’s majority-owned subsidiary Acacia Mining, Tanzania.
Under the agreement, economic benefits to be generated by Acacia in Tanzania will be equally shared between the company and the government on a 50/50 basis.
The deal features the necessary measures to be taken to achieve the newly agreed outcome, is a result of a meeting held between Tanzania President Dr John P Magufuli and Barrick Gold executive chairman John L Thornton.
Thornton said: “Following constructive discussions with our Tanzanian partners, 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.
“A partnership requires trust between the parties, and transparency is the currency of trust.
“Through our discussions over the last three months, we have established both and this will form the basis of our relationship in the future.”
In addition, both Barrick Gold the government of Tanzania have agreed to establish a working group to resolve the outstanding tax claims against Acacia.
Under the plan, Acacia is proposed to pay $300m to the government as a gesture of good faith. The payment’s terms will be finalised by the working group.
Proposals to be made under the new agreement are subject to review and approval by the independent committee of Acacia’s board of directors and Acacia shareholders.