Tanzania’s government will purchase a 16% stake in three mines in the country from Barrick Gold as part of arrangements to settle a dispute
Tanzania to purchase 16 percent stake in mines from Barrick Gold
Barrick hopes the arrangement will help settle its dispute with the government
Barrick Gold, the world’s largest miner of gold had been engaged in a dispute with John Magafuli’s government after it’s subsidiary, Acacia Mining was hit with a record $190 billion fine earlier in the year for unpaid taxes and penalties .
Tanzania’s president Magafuli has made reclaiming control over the country’s mineral riches a cornerstone of his presidency and the deal will be seen as a victory for him. The country also recently held an auction for a stock the precious stone tanzanite under heavy security.
According to Reuters, Barrick will also pay $300 million as a show of good faith to the government.
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