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The Launch of Twiga Minerals Heralds Partnership between Tanzanian Government & Barrick Gold

Mining News - Published on Tue, 22 Oct 2019

Image Source: miningnews.co.za
The government of Tanzania and Barrick Gold Corporation has reached an agreement to settle all disputes between the GoT and the mining companies formerly operated by Acacia but now managed by Barrick. The final agreements have been submitted to the Tanzanian Attorney General for review and legalization. The terms of the agreement include the payment of USD 300 million to settle all outstanding tax and other disputes; the lifting of the concentrate export ban; the sharing of future economic benefits from the mines on a 50/50 basis; and the establishment of a unique, Africa-focused international dispute resolution framework.

In conjunction with the finalization of the agreement, a new operating company called Twiga Minerals Corporation has been formed to manage the Bulyanhulu, North Mara and Buzwagi mines. Twiga is the Swahili word for giraffe, Tanzania's national symbol. The GoT will acquire a free carried shareholding of 16% in each of the mines and will receive its half of the economic benefits from taxes, royalties, clearing fees and participation in all cash distributions made by the mines and Twiga. An annual true-up mechanism will ensure the maintenance of the 50/50 split.

Barrick took over the management of the mines after its buy-out of the Acacia minorities last month. Since then it has negotiated the re-opening of North Mara and is engaging with the mines' host communities to restore their social license.

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Posted By : Rabi Wangkhem on Tue, 22 Oct 2019
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