Barrick Gold To Pay $300 Mln To Settle Tanzania Dispute Over Acacia Mining

(RTTNews) - Barrick Gold Corp. (GOLD, ABX.TO) agreed to pay US$300 million to the Tanzanian government to settle a long-running tax dispute between Tanzania and Acacia Mining, which Barrick acquired in a 951 million pounds deal approved by a U.K. court last month. The final settlement agreements will be reviewed and legalized by the Tanzanian Attorney General.

The agreement also include the lifting of the concentrate export ban; the sharing of future economic benefits from the mines on a 50/50 basis, Barrick said in a statement on Sunday.

As part of the settlement, an Africa-focused international dispute resolution framework will also be established.

A new operating company called Twiga Minerals Corp. has been formed to manage the Bulyanhulu, North Mara and Buzwagi mines.

The Tanzanian government will acquire a free carried shareholding of 16% in each of the mines and will receive its half of the economic benefits from taxes, royalties, clearing fees and participation in all cash distributions made by the mines and Twiga.