There was no doubt at all that this payment and the promise of the completion of implementation of an accord reached late last year between the two parties pointed to the dawn of a new epoch.
It is something that scholars in African universities have for decades wished to see: that partnership ought to replace imperialism in how African economies engage with multinational corporations.
The money was initial payment in respect of a US$300 million debt claim settlement originally involving Acacia Mining, taken over by majority shareholder Barrick Gold last year.
The virtual subsidiary wasn’t in a position to negotiate with the Tanzanian government, as it made efforts to stick to its prerogatives or have a foreign court settle the tax dispute, etc.
It was similarly a clearly proud day for Foreign and East African minister Prof Palamagamba Kabudi, who led the government’s negotiating team at the time.
The minister also inspired the wording and profound legal tonality of the ‘Natural Resources (Unconscionable Practices) Act’ which, at least in an academic sense, implied the repudiation of predatory practices. That is what is technically known as imperialism.
The Canadian company manages the Bulyanhulu, North Mara and Buzwagi gold mines. The two parties even reached a formula for sharing future economic benefits from the mines on a 50/50 basis, which implies that by that time the company’s initial capital will have been returned in full.
Other parameters of agreement are token considerations like conducting a feasibility study and extending in initial capital to the tune of US$5 million to a gold sand smelting facility.
Another token gesture is Barrick Gold’s creation of a link with the University of Dar es Salaam, allocating US$10 million in ten years for training related to the mining industry.
That could be especially useful for the university’s Geology Department, where Prof Kabudi was once legal adviser for the Senate and the University Council.
Equally noticeable though directing a ‘small matter’ impression is the payment of up to US$6 per ounce of gold sold by Barrick at its various mines at local communities.
This focus on villages bordering the mines had a complementary urban infrastructure accord: Barrick will spend US$40 million upgrading the Bulyanhulu-Mwanza road and building a housing compound and related infrastructure.
The government has meanwhile reciprocated Barrick’s goodwill gesture after the firm signalled its intention to pay Tanzania the US$100 million that was received early in the week, complete with a photo occasion arranged for a dummy cheque.
Accordingly, the government moved to release the 277 containers of mineral concentrates impounded when the virtual mining sector revolution started in earnest in mid-2017.
Yet there had first to be some changes in Tanzania’s political culture for things to get going in the sector. Bureaucracy was using loopholes in the law to look the wrong way as natural resources were being carted away.
The authorities have raised the bar as to ‘win-win’ arrangements in Tanzania’s mining sector, which to an extent has set a model for other African countries. It is no mean achievement, as occasional visitors like Prof Patrick Lumumba of the Kenya School of Law keeps telling academic audiences.
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