Barrick has negotiated a deal to end the dispute between its subsidiary Acacia Mining and the Tanzanian government.

The deal will see economic benefits from Acacia’s three mines in the country split 50-50 between the company and the government. Tanzania will receive its share in royalties, taxes and a 16 per cent free carry interest in Acacia’s mine.

Acacia will also pay the government US$300 million to resolve its outstanding tax claims, and will create a local operating company to manage its operations.

“Significant amounts of real value have been destroyed by this dispute,” said Barrick CEO Mark Bristow in a statement. “This proposal will allow the business to focus on rebuilding its mining operations in partnership with their respective shareholders, and most importantly long suffering investors, including Barrick.”

Barrick owns 63.9 per cent of Acacia.

Related: Acacia Mining and Helio Minerals met with costly upheavals in Tanzania

Acacia’s protracted dispute with Tanzania dates back to March 2017, when the country banned the export of concentrates. At the time, Acacia derived 30 per cent of its revenue from concentrates.

The country also hit the company with US$190 billion in fines and allegedly unpaid taxes in July 2017, stemming from a presidential committee’s findings that alleged Acacia owed the government for under-reporting gold and copper levels in its concentrate exports.

Both Tanzania and Acacia’s directors must approve the deal before it is finalized.