acacia mining

Government Should Be Transparent While Making Contracts With MNCs In Mining

Finnish ambassador Pekka Hukka said the Tanzanian government need to be transparent in the mining sector while making contracts with multinational companies.

Speaking on the sidelines of a tree planting event on Saturday and hailing President John Magufuli he added members of the public under such procedures will be made aware of their own resources.

The ambassador mentioned, “It’s high time developing companies thought hard how to use natural resources for their own benefits.”

Hukka continued that the government should be realistic on what benefits to get from the companies and that would be more valuable than the actual minerals.

Finland was going good with the resources as public was involved in every process of the company and even the people were happy with the outcome.

The ambassador said people understands gains or losses if they are involved in the process which also includes negotiations with the companies.

Currently several companies including Acacia are under a tax dispute with the government, which has been striving to ensure it benefits from the natural resources.

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.
Formerly known as African Barrick Gold, Acacia is the largest gold miner in Tanzania and the gold and copper export ban is costing it $1 million a day.

Barrick Gold owns 44 percent shares in Acacia.

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