LONDON (Reuters) – Barrick Gold will start to ship gold worth up to $280 million from Tanzania, chief executive Mark Bristow said on Monday, after the government lifted an export ban following the resolution of a three-year tax dispute.
The world’s second-largest gold miner signed a deal on Friday with Tanzania’s government, ending a row that dated back to when Acacia Mining ran the Tanzanian operations. Barrick fully acquired Acacia last year.
“The shipments will start immediately and, as we speak, we are mobilising the concentrates,” Mark Bristow told Reuters in a telephone interview.
“It’s (worth) around $260-$280 million depending on the price of metal prices at the time of sale.” Spot gold, which rose 18% last year, is hovering at about $1,600 per ounce.
Bristow said $100 million from the proceeds of the sale of concentrates will go towards paying down a $300 million settlement agreed with the government. As part of the deal, Tanzania will own 16% of Twiga Minerals, a new joint venture set up to manage the Bulyanhulu, North Mara and Buzwagi mines.