Barrick Gold has agreed to sell a 16 per cent stake in three mines in Tanzania to the government under a deal proposed to resolve a month’s long dispute.
Earlier on Thursday, Barrick Chairman John Thornton told a news conference in Dar es Salaam that apart from the stake, the company had agreed to pay Tanzania $300 million as a show of good faith, Reuters reports.
Thornton said the agreement would require approval by independent shareholders and Acacia’s board of directors.
Governments from Indonesia to South Africa are demanding greater control over mineral riches as metals prices rise. After moving into higher-risk countries to tap new deposits, mining companies are facing a rise in what is being called resource nationalism, the report said.
The company has been in talks with the Tanzanian government to resolve the tax dispute as well as an export ban of its mineral concentrates.
The government banned the export of unprocessed minerals and enacted laws earlier in 2017 to increase state ownership in mines.
Acacia was served in July with a bill for $190 billion for unpaid taxes, penalties and interest. It has been accused by Tanzania of evading taxes for years by under-declaring exports.
The company has been in talks with the Tanzanian government since June to resolve the tax dispute as well as an export ban of its mineral concentrates.
Barrick is the world’s biggest gold miner and has a 64% ownership of Acacia.
