Mining Dispute in Tanzania is paying off for the East African country

The deal to end a long-running dispute between Tanzania and the Canadian mining giant Barrick Gold is paying off for the East African country.

Twiga Minerals, a joint venture between the two, has paid its first dividend, bringing much needed revenue to the nation.

Twiga Minerals Corporation, which is a 50-50 partnership between the Tanzanian government and Barrick Gold has paid a maiden interim cash dividend of $250m (£190m) to its shareholders.

Barrick says the pay-out underlines its commitment to generate value for all stakeholders through the partnership.

For several years gold production suffered disruption in Tanzania, as the government was at loggerheads with Acacia Mining over an unpaid tax bill.

Last year, when Barrick took full control of Acacia, it set about finding a resolution to the tax dispute, which has reinvigorated gold mining in Tanzania, just as the price of gold surged.

Gold is in favour with investors who are seeking a safe haven, amid the global economic turmoil caused by the coronavirus pandemic.

Since Barrick took over Acacia Mining’s assets in Tanzania last year, it has paid approximately $205m to the government in taxes, royalties and dividends.