Tanzania, Barrick Gold agree framework for mining operations under new legislation

19 Octobre 2017

Dar es Salaam, Tanzania, October 19 (Infosplusgabon) -  After nearly four months of tough negotiations, Barrick Gold Corporation of Canada and the Government of Tanzania on Thursday agreed on a framework for a new partnership between Acacia Mining plc and the Government of Tanzania, whereby economic benefits generated by Acacia’s operations would be shared with Tanzania on a 50/50 basis going forward.

The deal was signed at the State House in Dar es Salaam by Barrick Gold chief executive Richard William and Tanzania’s Minister of Justice and Constitutional  Affairs Palamagamba Kabudi, witnessed by President John Pombe Magufuli and Barrick Executive Chairman John L. Thornton.

President Magufuli remarked that the agreement will enable the country to create more jobs, get various benefits including finance for improvement of social services and build a solid foundation for Tanzania to benefit from its mineral resources.

“Following constructive discussions with our Tanzanian partners, 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,” said. Thornton. “A partnership requires trust between the parties, and transparency is the currency of trust. Through our discussions over the last three months we have established both and this will form the basis of our relationship in the future.”

Among elements agreed are implementing a new dimension to the business of mining which put at the fore an equitable distribution of profits and the creation of a joint venture company for  management of gold mines in Tanzania. The company will have its headquarters in the lakeside city of Mwanza and a small office in Dar es Salaam instead of being located in the UK.

A notable achievement for Tanzania in these negotiations was that Barrick Gold has accepted all conditions set in the country’s new legislation on mines, which seeks maximum benefits to the country and its citizens.

FIN/INFOSPLUSGABON/OOL/GABON 2017

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