DAR ES SALAAM – Canadian miner Barrick Gold on Wednesday outlined a plan to settle disputes between its Acacia Mining unit and Tanzania's government, which includes a $300-million payment to resolve tax claims in the East African country.
London-listed Acacia and Tanzania's government have engaged in a prolonged dispute over tax evasion, breach of environmental regulations and other issues.
Barrick, which owns a 63.9% stake in Acacia, also proposed to create a local operating company in Tanzania and share economic benefits from Acacia's operations with the Tanzanian government on a 50:50 basis.
"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," Barrick CEO Mark Bristow said in a statement.
The proposal, which Barrick and Tanzania's government arrived at together, will soon be presented to Acacia's independent directors.
Acacia's shares rose 4.4% to 235 pence on the London Stock Exchange following Barrick's announcement.