Barrick Gold Corp. said its African subsidiary will make a $300 million payment to the government of Tanzania as part of an agreement to resolve a dispute over the miner’s operations.
Tanzania’s biggest gold miner in the country with $1 billion in annual revenue, struck a framework for a new partnership that will hand the African government 50% of the economic benefits of its mining operations.
The company was served with a $190 billion bill earlier this year for unpaid taxes, penalties and interest accumulated over the past 17 years.
The minerals commissioner with Tanzania’s mining ministry, Benjamin Mchwampaka, said the government had negotiated “a very good deal” with Acacia, which he said was in line with a July revamp of the country’s mining laws.
Mr. Mchwampaka said. “Apart from the legal requirements, we will be sharing revenues equally with Acacia Mining, this is what we have been pushing for all along, we are very pleased.”
He further said that the government plans to start negotiations on revenue sharing with other mining companies, as it pushes to increase the contribution of the mining industry to its gross domestic product to 10% by 2025, from the current 5%.