Friday, 20 October 2017

Fair mining sector era dawns

From Daily News, Dar es Salaam
By Daily News Reporter

The State, Barrick Gold to share profits on a 50-50 basis

THE government and Barrick Gold Mine Corporation have finally buried the hatchet with a resolution to share profits accrued from the mine on a 50-50 ratio and grant the State a 16 per cent stake in its gold mines.

The negotiations were reached after discussions between experts from the two sides, focused on resolving a tax dispute involving the Canadian company’s subsidiary, Acacia Mining. The company also agreed to pay 300 million US dollars (700bn/- ) as a show of good faith while the negotiations were still underway.

Speaking during the handover of a negotiations report to President John Magufuli in Dar es Salaam yesterday, the Minister of Justice and Constitutional Affairs, Prof Palamagamba Kabudi, said that the resolutions had brought great changes in supervising and managing the resource in the country.

“These efforts should not be ignored ... the 50-50 system proposed by Barrick is a great transformation in the sector not only in Africa but also in the world at large because the company, as majority shareholder, has agreed to the profits being shared equally,” Prof Kabudi said.

He said Tanzanians would also get permanent employment at the companies and will no longer stay in camps because they had agreed to drop the contractual employment system. He said under the new arrangement, the companies will also deposit incomes accrued from the business in local banks and transfer its offices from London and Johannesburg to Tanzania.

“We have resolved that the company’s headquarters will be located in Mwanza, but it can also open offices in other areas, the aim being to make sure that the company’s office is located where the mining activities are being conducted,” Prof Kabudi said.

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