Tanzania and Barrick Gold Formalize the Establishment of Twiga Minerals Corporation

Barrick Twiga Minerals Corporation Tanzania agreementBarrick Twiga Minerals Corporation Tanzania agreement

On 24th January 2020, Barrick Gold Corporation (NYSE: GOLD) (TSX: ABX) and the Government of Tanzania (GoT) signed the agreements to ratify the creation of Twiga Minerals Corporation, the management company jointly owned by the GoT and Barrick, that will oversee the management of Barrick’s mining operations in the country.

The new company is owned for 84% by Barrick and 16% by the GoT, and is based on 50/50 sharing of the economic benefits generated by the mining operations after the recoupment of capital investments.

In addition, Barrick will partner with the University of Dar es Salaam and commit up to USD 10 million in funding over a 10-year period for training and skills development in the mining industry, and will also commit up to USD 40 million to upgrade the road between the Bulyanhulu gold mine and Mwanza as well as constructing a housing compound and related infrastructure.

Twiga Minerals will also work on a local supplier strategy as well as a community development plan to create sustainable economic opportunities for the people around its mines.

The new company is the result of a dispute between Acacia Mining, a former subsidiary of Barrick and Tanzania’s largest gold producer, and the GoT since May 2017 when a presidential committee accused the company to have under-declared its mineral exports and eventually presented it with a demand for USD 190 billion in unpaid taxes.

During the signing ceremony, President Magufui congratulated Barrick Gold Corporation’s negotiating team by reaching this point, he has assured them that Tanzania will continue to be a great place for investment.

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He also ordered the auctioning of the 200 gold sand containers pertaining to Acacia Mining that were seized at the port of Dar es Salaam in 2017, for sale through Twiga Minerals Corporation.

Meanwhile, three mining company has recently served the GoT with dispute notices relating to some of their mining projects in Tanzania.