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 tax and revenue sharing disputes over its three gold mines in the country.
The Toronto-based mining company said its majority controlled Acacia Mining PLC has struck a framework for a new partnership that will hand the African government 50% of the economic benefits of its mining operations. Further details of the agreement weren't disclosed.
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Acacia, the biggest gold miner in the country with $1 billion in annual revenue, was served with a $190 billion bill earlier this year for what Tanzanian authorities have said were unpaid taxes, penalties and interest accumulated over the past 17 years.
Tanzania banned exports from two of Acacia's mines in March after the government alleged it found 10 times more gold in the company's export containers that in declared to Tanzanian authorities. Acacia disputed the claim
The aggressive actions by Tanzania President John Magufuli, who earlier this year declared an "economic war" on foreign miners, prompted some companies to cease or scale back mining operations in the country.
The agreement was signed in the Tanzanian city of Dar es Salaam on Thursday morning following a meeting with Barrick Executive Chairman John Thornton and Mr. Magufuli.
"We have developed a framework for a modern, 21st century partnership that should ensure Acacia's operations generate sustainable benefits and mutual prosperity for the people of Tanzania, as well as for the owners of Barrick and Acacia," Mr. Thornton said in a statement.
Write to Jacquie McNish at Jacquie.McNish@wsj.com
(END) Dow Jones Newswires
October 19, 2017 11:09 ET (15:09 GMT)