Tanzania Government Told to Open Up Over Barrick Deals

By Habel Chidawali Citizentz

Dodoma — Debate on the newly-signed agreements between the government and Barrick Gold Corporation found its way into the National Assembly yesterday, with the Opposition ranks mounting pressure on the government to reveal contents of the pacts.

Last week, the two parties to the deal put pen to paper on a long-awaited mining agreement that redefines how the leading global gold miner would operate in Tanzania.

Among other things, the deals give the State a 16 per cent holding in three operating gold mines whose combined output is Tanzania's biggest exports earner. The government and Barrick, according to the agreements, will also split 'economic benefits' on a 50/50 basis with Tanzania in the new joint venture, Twiga Minerals Corporation, after factoring in operational costs. But the shadow minister for Minerals, Mr John Heche (Chadema - Tarime Rural), told journalists here yesterday that at least four issues have not been made open regarding the deal between the government and Barrick Gold. As such, he said, it would be wise if the agreements were sent to Parliament so that 'the truth' could be revealed to the people's representatives in the august House.

Mr Heche, who was addressing journalists in Parliament's press gallery, said his party would press the government to reveal details of the claimed economic benefits that Tanzania would get under the pacts.

"We also need the government to come out and openly explain what the 16 percent ownership means to Tanzanians," he said.

At the height of the dispute between the government and Barrick's defunct subsidiary, Acacia Mining, the former slapped the latter with a $190 billion bill in unpaid tax claims, including penalties and interest.

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In a 2017 investigative report that was prepared by the team led by Abdulkarim Mruma, it was discovered that, while only three types of minerals - gold, copper and silver - were being declared (whose value was under-declared, anyway!), the gold concentrates contained eight other types of minerals. The report concluded that Tanzania had been losing billions of US dollars from the under-declaration of gold, copper and silver concentrates, and from non-declaration of eight other types of minerals. The Opposition bench in the House says it was unfortunate that no more information was revealed on the topic after the government and Barrick signed the deals.

The government has now allowed Barrick, under Twiga - the joint company - to resume exportation of the mineral concentrates but the Opposition questions why exports would start while the due taxes, penalties and interest have not been paid.

"Barrick should have paid the money first because once a tax claim has been made, in line with Section 14 of Tanzania Revenue Authority Act, nothing can be done until the money is paid," he said.

He said the signed agreements were in contravention of provisions of the mining law as outlined in sections 4, 9, 11 and 12 of the Written Laws (Miscellaneous Amendments) Act 2017, which hitherto amended the Mining Act. "These provisions prohibit the exportation of mineral concentrates. They also prohibit the country from being sued by investors in foreign courts. All these have not been considered in the signed agreement," he said.