×

UPDATE 1-Barrick to give Tanzania mines stake, $300 mln to end dispute

(Adds quotes, context)

DAR ES SALAAM, Oct 19 (Reuters) - Barrick Gold will give Tanzania a 16 percent stake in three gold mines, a 50 percent share in revenues from the mines and a one-off payment of $300 million to resolve a dispute that has hit its operations in the country, the two sides said.

The Canadian miner and Tanzanian government have been in talks for months after the east African country banned the export of unprocessed minerals and enacted new laws to raise state ownership of the nation's mines.

Tanzania is Africas fourth-largest gold producer, and Barrick's Acacia Mining Plc is its largest miner, with three gold mines that also produce copper.

At 1200 GMT, Acacia's London-listed shares were up 18 percent following news of the deal.

Barrick Chairman John Thornton told a news conference in the Tanzanian capital the deal would have to be approved by the independent shareholders and directors of Acacia Mining.

Tanzanian justice and constitutional affairs minister Palamagamba Kabudi said the agreement was in keeping with the new mining laws passed in July.

"We have also agreed to have a 50:50 share of revenues between the government and Acacia Mining from all the mines," he added. (Reporting by Fumbuka Ng'wanakilala; Writing by Maggie Fick; Editing by Jason Neely and Mark Potter)