Tanzania: Prof Kabudi Says Acacia's London Headquarters to Move to Mwanza Tanzania

Photo: Daily News
Tanzanite.

Dar es Salaam — Barrick Gold Corporation and the Tanzanian government have finally concluded their talks and came up with a number of agreements that included the ceding of 16 per cent shareholding in each mine by Barrick Gold, according to government's chief negotiator Prof Palamagamba Kabudi.

In the intensive talks that have taken three months the two parties have also agreed that Acacia's London headquarters as well as the Acacia's Johannesburg-based Treasury House should move to Tanzania.

"Our preference is that Acacia's headquarters should move to Mwanza, the city that is located at the heart of the gold zone," Prof Kabudi who is also the minister for Justice and Legal Affairs said.

Prof Kabudi also said Barrick Gold has agreed to abide to all conditions and requirements of the new natural resources laws.

In addition to taking the ownership of 16 per cent in each Acacia's mine, the two parties have also agreed to share profits by 50 per cent in future.

"We have also agreed that a holding company should also be formed, that Tanzanian directors should be appointed to Acacia mining companies' boards," Prof Kabudi said.

Another key agreement as far as the metallic minerals concentrates is concerned is that Acacia will own only the three types of minerals (gold, silver and copper) while the rest of the metallic minerals as well as the rare earth that are contained in the concentrates will be owned by the government.

Nothing was mentioned about whether Acacia will now be allowed to export the thousands of tonnes of mineral concentrates that have been piling up at the Dar es Salaam port and at the mines since the government banned their export in March this year.

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