One key aspect of the new deal is an even split by the two parties of Bulyanhulu, Buzwagi and North Mara’s economic benefits, with the government’s share to come in the form of royalties, taxes and carry-free interest in the operations of 16%.
Additionally, a new operating company will be formed to oversee the trio of operations, as well as all future mines in the country.
“The principle of total transparency between partners will define how this company operates,” Barrick officials said. “For instance, the government of Tanzania will participate in decisions related to operations, investment, planning, procurement and marketing.”
The miner said it will maximise the employment of locals and help to increase capacity at all business levels from its board to its portfolio, and plans are also in place to increase its procurement of goods and services from within the country’s boundaries.
“Barrick has also committed to work with the government of Tanzania to advance concepts for increasing in-country beneficiation of gold,” it said.
Finally, Barrick – who holds 63.9% interest in Acacia, will pay US$300 million to the Tanzania government in an effort to resolve its outstanding taxes. Terms are not yet settled for that portion.
The partnership parties, which are currently awaiting reviews and approvals of the proposed transaction by both Acacia shareholders and an independent board committee, will also be evaluating the conditions to lift Tanzania’s concentrate export ban.