Tanzania Settles Mining Dispute with Acacia

The Government of Tanzania has settled a dispute with Acacia Mining Plc following a meeting between President Magafuli and Barrick Gold COO Willem Jacobs.

Barrick, which holds a 63.9 percent stake in Acacia, has agreed to a proposal which will now be presented to Acacia’s directors for approval.

The two parties have been at odds over allegations including tax evasion and environmental violations relating to the firms three mines in northern Tanzania. Barrick previously agreed to a $300mn payment, the creation of a local operating firm and a 50-50 share of the economic benefits of output with the government in October 2017.

In a statement Barrick wrote, “Significant amounts of real value have been destroyed by this dispute and, in Barrick’s view, this proposal will allow the business to focus on rebuilding its mining operations in partnership with their respective stakeholders.”

Earlier this week Acacia announced its return to profitability, announcing net earnings of $59mn in 2018, compared with loses of $707mn in 2017.