Last checked at 
* State takes 16% stakes in Barrick mines
* Seized gold, copper concentrate will now be exported
-Magufuli
* Two sides struck deal in October
* 'We almost lost hope' -minister
(Adds announcement on concentrates, Barrick statement,
AngloGold Ashanti statement, quotes)
By Fumbuka Ng'wanakilala
DAR ES SALAAM, Jan 24 (Reuters) - Canada's Barrick Gold Corp
signed a deal with Tanzania on Friday in which the
government will take stakes in three gold mines, ending a
long-running tax dispute and setting a template for negotiations
with other firms.
It was signed by Barrick CEO Mark Bristow and Tanzanian
minerals minister Doto Biteko at a ceremony in the commercial
capital, Dar es Salaam.
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.
South Africa-born Bristow, describing the dispute as a "long
safari" since it emerged in 2017, struck a conciliatory tone in
a speech at the ceremony broadcast on state TV. Safari means
"journey" in Swahili.
"Many people said your criticism will chase away investors
... what it's done is challenge the mining industry and all of
us to embark on something where we win together or lose
together," Bristow said to applause.
Casting himself as a "Zulu boy" born in Zululand, Bristow
called it a "historical day" for Africa.
"President, what I am here to do today is to offer you the
hand of Barrick," the CEO added, moving from the lectern to
shake President John Magufuli’s hand.
The company said it had budgeted $50 million for brown and
greenfield exploration in Tanzania in 2020.
"I 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.
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.
"Twiga 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," Bristow
said.
Foreign Affairs Minister Palamagamba Kabudi, who led
Tanzania's negotiating team, said Tanzania now owns 16%
undiluted shares in Twiga Minerals, as well as a 16% stake in
each of the Barrick mines.
"We 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,"
Kabudi said.
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's output.
RENEGOTIATING ALL DEALS
Minerals make up the majority of Tanzania's exports and are
a key source of foreign exchange for Africa's fourth-biggest
gold producer.
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.
Mining licences from now on will be issued by Tanzania's
Mining Commission under the guidance of the president, Kabudi
said.
South African miner AngloGold Ashanti's Geita is
the largest gold mine in Tanzania. Other miners operating in the
country include Shanta Gold and Petra Diamonds.
"It’s 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," said an
AngloGold Ashanti spokesman.
"This deal is a sigh of relief not just for Barrick or the
mining industry in Tanzania, but for investors in the broader
region," said Margarita Dimova, associate director at consulting
firm Africa Practice.
A mining executive working in Tanzania said the agreement
was positive for the sector: "A lot of key issues impacting
projects getting off the ground were being pushed aside until
the Barrick deal was sorted."
(Reporting by Fumbuka Ng'wanakilala in Dar es Salaam, Omar
Mohammed in Nairobi and Helen Reid in Johannesburg; writing by
Helen Reid; editing by David Holmes and Jason Neely)
