Barrick details proposal to settle Acacia dispute with Tanzania – by John Benny (Reuters Canada – February 20, 2019)

(Reuters) – Canadian miner Barrick Gold outlined on Wednesday details of a deal it reached with the government of Tanzania to settle its disputes with Acacia Mining, including a $300 million payment to resolve tax claims in the country.

The news sent London-listed shares in Acacia, which is 63.9 percent owned by Barrick, up 6 percent to their highest since October 2017, when an initial framework agreement was announced.

Barrick’s announcement confirms the 2017 deal which called for the creation of a local firm in Tanzania to manage Acacia’s assets, a 50-50 split of economic benefits and a $300 million payment to resolve all outstanding tax claims in the East African country.

Acacia, which was not allowed to negotiate for itself, and Tanzania’s government have been locked in a prolonged conflict with the government tearing up mining contracts, hiking taxes and royalties, and banning exports of raw minerals.

Sources have said initial agreement had been difficult to reach due to differing views from the government and the two companies about how the $300 million would be paid.

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