When Tanzania settled a long dispute in 2019, it took the state's stake free of any loan and fixed an equal split of total economic benefits in numbers.
Key facts
| Chapter | What Tanzania did |
|---|---|
| 4. Settlement agreement | 20 October 2019: Barrick agreed to pay US$300 million to settle all tax and other disputes (Barrick) |
| 3. State stake | The government holds a 16% free carried stake in each of the Bulyanhulu, North Mara and Buzwagi mines (Barrick) |
| 7. Benefit split | Economic benefits are shared 50/50; the state's half counts taxes, royalties, clearing fees and its share of cash distributions; an annual true-up keeps the 50/50 split (Barrick) |
| 5. Company structure | A new company, Twiga Minerals, manages the three mines and gives the government full visibility of and participation in operating decisions (Barrick) |
| 12. Disputes | An Africa-focused international dispute resolution framework; the concentrate export ban was lifted (Barrick) |
| 8. Local content | 96% of the workforce is Tanzanian and 49% comes from nearby communities; more than 90% of procurement goes to Tanzanian suppliers (Barrick) |
| Results | US$4.79 billion injected into Tanzania's economy since 2019, including US$558 million in the first half of 2025 (Barrick) |
What Mongolia can copy
- Take the state's stake as a free carried interest, not a loan, so no debt builds up and dividends are not pushed back.
- Agree the split of total benefits (taxes + royalties + dividends) in numbers, not just an equity percentage.
- Reconcile the split every year and correct any gap the next year. Oyu Tolgoi's 53% target could be measured this way.
What doesn't transfer directly
- Tanzania's deal followed an export ban and a mine closure; that path carries a high cost in investor confidence.
- It came when Barrick took over the mines from Acacia, giving both sides a fresh start.
This profile is part of the report Fair Contracts, Fair Returns and focuses on chapters 3–5 of the 12-chapter template. Research on the other chapters is in progress.