GOLD: Barrick, Tanzania settle differences, launch Twiga

[caption id="attachment_1003731300" align="aligncenter" width="422"] The North Mara gold mine operates underground as well as an open pit. (Image: Acacia/Barrick Gold)[/caption] TANZANIA – The government of Tanzania and Canada’s Barrick Gold Corp. say they have settled all the disputes between the state and the former Acacia mines. Barrick will pay US$300 million to settle outstanding tax and other disputes. In return, the government will lift the concentrate export ban. The two sides have agreed to share future economic benefits from the mines on a 50:50 basis. They are also establishing an Africa focused international dispute resolution framework. As soon as their agreement is finalized, a new operating company called Twiga Minerals Corp. will manage the Bulyanhulu, North Mara and Buzwagi mines. Twiga is the Swahili word for giraffe, Tanzania’s national symbol. The government will acquire a free carried equity of 16% in each of the mines and will receive its half of any profits from taxes, royalties, clearing fees and cash distributions made by the mines and Twiga. An annual accounting and top-up will ensure even sharing of the benefits. At press time, information on the three mines Twiga will operate could be found at www.AcaciaMining.com/operations/operating-mines.aspx.