TORONTO - Barrick Gold Corp. has signed an agreement with the Tanzanian government to formalize a joint venture relating to three mines that ends a long-running tax dispute with the African country.
The Toronto-based gold miner signed the deal with United Republic of Tanzania President John Pombe Magufuli that will give the government "full visibility of and participation in operating decisions made for and by the North Mara, Bulyanhulu and Buzwagi mines."
The agreement also formalizes the creation of a jointly owned management company that will oversee Barrick's local operations.
Barrick owns 84 per cent with the government owning the remaining 16 per cent, however the economic benefits will be shared evenly after the repayment of capital investments.
The company has agreed to partner with the University of Dar es Salaam and commit up to US$10 million over a decade for training and skills development in the mining industry. It will also spend up to US$40 million to upgrade a road and build a housing compound with related infrastructure.
Barrick settled a long dispute with Tanzania in October when it struck the deal that would see it pay US$300 million to settle all outstanding tax and other disputes over its mines in the country.
This report by The Canadian Press was first published Jan. 24, 2020.
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