Tanzania
Barrick pays first tranche of the USD 300 million settlement
The Tanzanian government has recently received USD 100 million from Barrick Gold Corporation as the first tranche payment of the USD 300 million cash component of the recent restructuring. It is reported that this initial payment will be followed with five equal USD 40 million annual payments.
The other news related to the above is that the Tanzanian government has issued an export permit to allow the export of the 277 mineral concentrates containers held in Dar es Salaam since 2017.
The above appears to be the implementation of the deal that was entered into between the Tanzanian government and Barrick Gold Corporation earlier this year. As a result of this deal a joint venture company called Twiga Minerals Corporation was created in which the government holds a 16% free carried interest. This is in line with the amended Mining Act that requires the government to be given not less than 16% free carried interest in every company that holds a mining licence or a special mining licence.
Works on the East African Crude Oil Pipeline to commence next year
Following on from the Tullow and Total SA deal which was announced in April 2020, further positive news has been announced in relation to the Lake Albert oil project. While addressing the Tanzanian parliament last month, the Energy Minister, Dr Medard Kalemani announced that the construction of the Hoima to Tanga crude oil pipeline is expected to begin in April 2021.
According to Dr Kalemani while the parties await the final investment decision in relation to the project, the priority during the forthcoming financial year is to ensure the finalisation of the negotiations of the following key project agreements: Host Government Agreements, Shareholders' Agreement, Land Lease Agreement and the Ports Agreement.
Following on from the Tullow and Total SA deal which was announced in April 2020, further positive news has been announced in relation to the Lake Albert oil project. While addressing the Tanzanian parliament last month, the Energy Minister, Dr Medard Kalemani announced that the construction of the Hoima to Tanga crude oil pipeline is expected to begin in April 2021.
According to Dr Kalemani while the parties await the final investment decision in relation to the project, the priority during the forthcoming financial year is to ensure the finalisation of the negotiations of the following key project agreements: Host Government Agreements, Shareholders' Agreement, Land Lease Agreement and the Ports Agreement.
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