Barrick and Tanzania reach proposal to settle country's row with AcaciaStaff Writer | February 21, 2019
Barrick Gold Corporation announced that the company, in its capacity as a facilitator, and the Government of Tanzania have arrived at a proposal that sets forth the commercial terms to resolve outstanding disputes concerning Acacia Mining plc’s operations in Tanzania.
Africa Barrick will present this proposal to the Independent Directors of Acacia
The proposed framework is consistent with the agreement announced in October 2017 and includes the following elements:
- The creation of a local operating company to manage Acacia’s operations in the country.
- Economic benefits from Acacia’s operations to be shared on a 50/50 basis. The Government’s share of economic benefits would be in the form of royalties, taxes and a 16 percent free carry interest in the Tanzanian operations.
- A payment of $300 million to the Government of Tanzania to resolve outstanding tax claims, to be paid over time on terms to be settled by the parties.
Work is underway to finalize the definitive agreements needed to give effect to the proposal. To become effective, the proposal and those agreements must be approved by Acacia and the Government of Tanzania, in keeping with applicable laws and regulations. Barrick holds a 63.9 percent equity interest in Acacia, a publicly traded company listed on the London Stock Exchange that is operated independently of Barrick. ■