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Mining News October 21, 2019 11:30:12 AM

Barrick Gold Corp. to Restart Gold Mining in Tanzania

Paul Ploumis
ScrapMonster Author
The deal comes barely a few days after the company reported substantial decline in total gold production during Q3 this year.

Barrick Gold Corp. to Restart Gold Mining in Tanzania

SEATTLE (Scrap Monster): Barrick Gold Corporation is all set to restart gold mining in Tanzania. The company, whose gold exports from the country have been halted since early 2017, has reached an agreement with the government authorities, thereby ending the tax-dispute between the company and Tanzanian government authorities. The new partnership deal is expected to be completed by mid-November this year.

As per the tax deal reached between both the parties, Barrick has agreed to pay $300 million in settlement of the outstanding tax and other disputes. The parties have also agreed to share ownership and future economic benefits from Barrick’s three Tanzanian mines on 50-50 basis. Consequently, the African country has agreed to lift the ban imposed on concentrate exports. The agreement also calls for establishment of an international dispute resolution framework to deal with potential roadblocks in future.

ALSO READ: Barrick Gold Announces Closure of Peruvian Gold Mine

The press statement released by Barrick noted that a new operating company named Twiga Minerals will be formed to manage the company’s mining operations in the country, further to review by Tanzania’s attorney general. Also, the Tanzanian government will purchase 16% ownership stake in each of the three mines in Bulyanhulu, North Mara and Buzwagi.

The deal comes barely a few days after the company reported substantial decline in total gold production during Q3 this year, for which it had blamed lower output from Tanzanian North Mara mine.

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