Barrick Gold Corp. Executive Chairman John Thornton met with Tanzania’s president in an effort to resolve an impasse between the government and Acacia Mining Plc, of which Barrick is a majority shareholder, the statement from Magufuli's office said.
The east African country has accused Acacia of operating illegally and cheating the country of tens of billions of dollars by understating by more than 10 times the gold and copper concentrate levels in its mineral exports.
“Mr. Thornton said his company is ready to hold talks with Tanzania that will consider the interests of both sides and is ready to pay all the money it’s expected to pay Tanzania,” President Magufuli said. The government welcomes such talks and will establish a panel of experts to negotiate how the company will pay the money and how it will conduct future operations in the country.
He said a special committee would be appointed, "with a view to an agreement on the reimbursement of the money due to Tanzania and how the company will now conduct its operations in the interests of both parties."
Mr Thornton said he was very optimistic a solution could be reached after what he described as very extensive and productive discussions. “I’ve assured the president we’re very interested in sitting down and reaching a resolution which is a win-win,” he said. “A win for Tanzania, a win for Barrick and our subsidiary company Acacia.”
Toronto-based Barrick, which owns 64 percent of Acacia, also agreed on Wednesday to help Tanzania build a smelter, according to the presidency’s statement, which didn’t provide further details.
“The meeting was constructive and open, with the parties agreeing to enter into negotiations to seek a resolution that is in the best interests of all stakeholders, including Tanzania, Barrick, and Acacia,” Barrick said in a statement Wednesday.
On Monday, a government commission said fraud in the mining sector had cost Tanzania $84bn over 19 years and blamed foreign companies for failing to declare revenues.
Tanzania is rich in minerals and ranks fourth among gold producers on the continent. Gold is the country's leading mineral export and one of its primary sources of revenue. Tanzania also exports copper, nickel, silver, diamonds and other precious stones such as tanzanite.
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