Tanzania to purchase 16 percent stake in mines from Barrick Gold

godfred akoto

October 20, 2017 12:18 PM

Barrick hopes the arrangement will help settle its dispute with the government

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

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.

godfred akoto