Tanzania receives initial $100 million payment from Barrick

Tuesday May 26 2020

Dodoma. Tanzania government has today received $100 million (Sh230 billion) from Barrick Gold which is the first tranche of $300 million agreed as goodwill gesture to end dispute between the two parties.
Barrick inherited a dispute from its subsidiary Acacia Mining which Tanzania government in 2017 accused of operating illegally and understating gold exports.
Last year, the two sides signed a deal to settle a long-running tax dispute which included the payment of the $300 million.
The two sides also formed a jointly owned Twiga Minerals Corporation in which the government of Tanzania has 16 per cent free-carried equity. The company replaced Acacia Mining.
 “I congratulate Barrick for implementing our agreement and call upon other mining firms to emulate the move in ensuring a win-win situation,” said the Minister for Finance and Planning Dr Philip Mpango who received a dummy cheque from the company’s representatives.
Barrick’s Tanzania subsidiary Twiga Minerals has resumed exports of gold concentrate after receiving clearance for its first shipments since the lifting of a government ban imposed during a tax dispute with the mining company.
The dispute originally involved Acacia Mining, which was taken over by Barrick last year. The Tanzanian government imposed a ban on exporting mineral concentrates in 2017 after accusing Acacia of tax evasion.
 “In terms of its framework agreement with the government, the shipping of some 1,600 containers of concentrate stockpiled from Bulyanhulu and Buzwagi resumed in April and the first $100 million received from the sale has gone to the government,” said Barrick Gold in a statement.