![\"Barrick](\"https:\/\/www.moneyweb.co.za\/wp-content\/uploads\/2019\/02\/1200x-1-555x370.jpg\")
<\/p>\nIt was signed by Barrick CEO Mark Bristow and Tanzanian minerals minister Doto Biteko at a ceremony in the commercial capital, Dar es Salaam.<\/p>\n
It follows an announcement by the two sides in October in which they agreed to a payment of $300 million to settle outstanding tax and other disputes, the lifting of an export ban on concentrates and the sharing of future economic benefits from mines.<\/p>\n
South\u00a0Africa-born Bristow, describing the dispute as a \u201clong safari\u201d since it emerged in 2017, struck a conciliatory tone in a speech at the ceremony broadcast on state TV. Safari means \u201cjourney\u201d in Swahili.<\/p>\n
\u201cMany people said your criticism will chase away investors \u2026 what it\u2019s done is challenge the mining industry and all of us to embark on something where we win together or lose together,\u201d Bristow said to applause.<\/p>\n
Casting himself as a \u201cZulu boy\u201d born in Zululand, Bristow called it a \u201chistorical day\u201d for\u00a0Africa.<\/p>\n
\u201cPresident, what I am here to do today is to offer you the hand of Barrick,\u201d the CEO added, moving from the lectern to shake President John Magufuli\u2019s hand.<\/p>\n
The company said it had budgeted $50 million for brown and greenfield exploration in Tanzania in 2020.<\/p>\n
\u201cI thank God for the success of this agreement, said Magufuli, who has made a point of extracting more income from natural resources and described the negotiations as a clash between a cow and a rabbit.<\/p>\n
He said confiscated containers of gold and copper concentrate could now be exported to the benefit of Twiga Minerals, a new joint venture set up to manage the Bulyanhulu, North Mara and Buzwagi mines.<\/p>\n
\u201cTwiga Minerals represents a structure which allows the government and the people of Tanzania to be involved in the decision-making of everything that we do together,\u201d Bristow said.<\/p>\n
Foreign Affairs Minister Palamagamba Kabudi, who led Tanzania\u2019s negotiating team, said Tanzania now owns 16% undiluted shares in Twiga Minerals, as well as a 16% stake in each of the Barrick mines.<\/p>\n
\u201cWe almost lost hope in the discussions with Barrick and I was ready to tender my resignation to the president for failing to complete this task, but we ultimately got the deal done,\u201d Kabudi said.<\/p>\n
The dispute originally involved Acacia Mining, which was bought out by Barrick. The government imposed a ban on exporting mineral concentrates in 2017 after accusing Acacia of tax evasion, leading to a one-third cut in the miner\u2019s output.<\/p>\n
Renegotiating all deals<\/strong><\/p>\n Minerals make up the majority of Tanzania\u2019s exports and are a key source of foreign exchange for\u00a0Africa\u2019s fourth-biggest gold producer.<\/p>\n The government said it is renegotiating mining agreements with all existing companies to get a minimum 16% stake in each large-scale mine, in accordance with mining laws passed in 2017.<\/p>\n Mining licences from now on will be issued by Tanzania\u2019s Mining Commission under the guidance of the president, Kabudi said.<\/p>\n South\u00a0African miner AngloGold Ashanti\u2019s Geita is the largest gold mine in Tanzania. Other miners operating in the country include Shanta Gold and Petra Diamonds.<\/p>\n \u201cIt\u2019s encouraging for all stakeholders in the mining industry that Tanzania and Barrick have formalised an agreement and have started a new chapter in the country,\u201d said an AngloGold Ashanti spokesman.<\/p>\n \u201cThis deal is a sigh of relief not just for Barrick or the mining industry in Tanzania, but for investors in the broader region,\u201d said Margarita Dimova, associate director at consulting firm\u00a0Africa\u00a0Practice.<\/p>\n A mining executive working in Tanzania said the agreement was positive for the sector: \u201cA lot of key issues impacting projects getting off the ground were being pushed aside until the Barrick deal was sorted.\u201d<\/p>\n