Barrick Gold Corporation has announced that the Company and the Government of Tanzania have 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.
A framework outlining the necessary steps for achieving this outcome was signed in Dar es Salaam following a meeting between Barrick Executive Chairman John L. Thornton and the President of the United Republic of Tanzania, John P. Magufuli.
“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 Barrick Executive Chairman, John L. 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.”
Barrick and the Government of Tanzania have also agreed to form a working group that will focus on the resolution of outstanding tax claims against Acacia. Under this proposal, as a gesture of good faith, Acacia would make a payment of $300 million to the Government of Tanzania, with payment terms to be settled by the working group.
All proposals are subject to review and approval by the Independent Committee of Acacia’s Board of Directors and John L. Thornton shareholders. Acacia will provide further details on the proposals in due course.
Barrick holds a 63.9 percent equity interest in Acacia, a publicly traded company listed on the London Stock Exchange that is operated independently of Barrick.