Mining giant Barrick gives Tanzania 16pc stake in gold mines

Dar es Salaam: Mining giant Barrick Gold agreed to give Tanzania a 16 per cent stake in its three gold mines in the East African nation, half of all revenue from those mines and a $300 million payment to settle tax disputes.
After three months of negotiations, government representatives and John Thornton, the chair of Canada-based Barrick, the world’s largest gold mining company, signed an agreement at State House in the capital, Dar es Salaam, which was broadcast live on television.
“The partnership will build trust that has been lacking in our past engagements,” said Thornton. The agreement will ensure that Tanzania reaps greater benefit from its natural resources, said Justice Minister Palamagamba Kabudi, who led the negotiations on the government’s side. The talks started after government in June accused London-based Acacia Mining, majority-owned by Barrick, of under-declaring revenues and tax payments by tens of billions of dollars over several years. — dpa