Launch of Twiga Minerals Heralds Partnership Between Tanzania, Barrick
In conjunction with the agreement, a new operating company called Twiga Minerals Corp. has been formed to manage the Bulyanhulu, North Mara and Buzwagi mines. The government will acquire a free carried shareholding of 16% in each of the mines and will receive its half of the economic benefits from taxes, royalties, clearing fees and participation in all cash distributions made by the mines and Twiga. An annual true-up mechanism will ensure the maintenance of the 50/50 split.
Barrick President and Chief Executive Mark Bristow said the agreements introduced a new era of productive partnership with the government and would ensure that Tanzania and its people would share fully in the value created by the mines they hosted. This agreement also marked the end of the long impasse between the government and Acacia, which led to the closure of North Mara and the freezing of export concentrate from the two other operations.
Barrick took over the management of the mines after its buyout of the Acacia minorities last month. Since then, it has negotiated the reopening of North Mara and is engaging with the mines’ host communities to restore their social license. “Rebuilding these operations after three years of value destruction will require a lot of work, but the progress we’ve already made will be greatly accelerated by this agreement,” Bristow said.