Dar es Salaam. Barrick gold handed 16 per cent of its shares to the newly formed Twiga Mining Corporation as the two parties signed nine agreements to end a mineral dispute, which existed for over 10 years.
The signed agreements are framework agreement, management and administrative services agreement, Twiga shareholders agreement, North Mara shareholding agreement, Bulyamkulu shareholders agreement, Buzwagi shareholders agreement, North Mara development agreement, Bulyankulu development agreement, Pangea development agreement
In a televised event Barrick also received a shareholding request letter from the government for the newly formed Twiga Mining Corporation. The later also handed a certificate of share ownership to the former in an event which was witnessed by President John Magufuli.
Speaking during the ceremony held at the state house on Friday, 24, 2020, the chairman of negotiation team, who is also minister for Foreign Affairs, Prof Palamagamba Kabudi commended Barrick chairman Prof John Thornton for his cooperation throughout the negotiation period.
According to Prof Kabudi, the negotiation, which started three years ago almost broke, but thanks to Prof Thornton wisdom the two parties reached consensus.
“He is an honest guy, who admitted that the existing deal between Barrick and government were not fair. We agreed to establish a new company,” he said.
“We also agreed to share economic benefits as well as undiluted shares which means even if the investor increases capital we will continue to own 16 per cent,” he added.
According to him the second phase of the discussion was the most difficult.
“I almost lost faith. I can reveal to you Mr President, I once wrote a resignation letter to you, but Mr Kyuki convinced me not to submit it,’” said Prof Kabudi.
Dr Magufuli commended the negotiation team for their tireless efforts.
“Many Tanzanians might not be aware of your efforts. The sacrifice you put to defend national interests will be rewarded by God,” said the President.
The president also commended the Barrick team for cooperation by declaring that “the game is over” for tax dispute with regards to cooper concentrate export.