acacia

Acacia Shares Dip 30% Following Ban On Gold, Copper Export

Acacia Mining shares dipped by 30 percent following the accuse from Tanzanian government the company had not fully declared all the minerals in its shipments.

Formerly known as African Barrick Gold, the company however claims nothing has been in hiding and they pay all the appropriate royalties and taxes to the government on all the minerals they produce.

Tanzania banned gold and copper export earlier this year in March and an investigation was launched by the government authorities to ensure extracted raw materials are processed in the country.

Acacia is the largest gold miner in Tanzania and the gold and copper export ban is costing it $1 million a day.

The company added value of minerals concentrates in its Dar es Salam port containers is more by 10x to the declared amount though full report is yet to be seen. A further report from the company is expected soon.

Meanwhile, President John Magufuli said the company did declared gold, copper and silver but failed to mention other precious metals in the mineral sand exports.

Magufuli took office in October 2015 promising a zero tolerance for corruption. He has fired several ministers including mines and minerals minister Sospeter Muhongo and information minister Nape Nnauye.

He also sacked ghost workers and those public servants who had submitted fake academic certificates to get the jobs.

Experts believe Acacia may shut down operations at Bulyanhulu and Buzwagi as stockpiling would eat up the working capital and logistics challenge too will be created.

Barrick Gold owns 44 percent shares in Acacia.

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