Oct 20 (Reuters) – Barrick Gold Corp said it had reached a deal to settle a long-running tax dispute between Tanzania and mining group Acacia, which Barrick bought in a $1.2 billion deal approved by a British court last month.
The agreement includes the payment of $300 million to settle outstanding tax and other disputes, the lifting of a concentrate export ban, and the sharing of future economic benefits from mines on a 50-50 basis, Barrick said in a statement on Sunday.
An Africa-focused international dispute resolution framework will also be established as part of the agreement, Barrick said.
The deal comes days after the Canadian company fell short of analysts’ estimates for third-quarter gold production due to low output at its North Mara mine in Tanzania.
A new operating company named Twiga Minerals will be formed to manage the Bulyanhulu, North Mara and Buzwagi mines after a review by Tanzania’s attorney general, the statement added.
The Tanzanian government will also buy a shareholding of 16% in each of the mines, according to the agreement. (Reporting by Sabahatjahan Contractor in Bengaluru Editing by David Holmes)