Acacia CEO, CFO to step down

JOHANNESBURG (miningweekly.com) – Brad Gordon and Andrew Wray will step down as CEO and CFO of Acacia Mining at the end of this year.

Gordon will return to Australia for family reasons, while Wray is pursuing an opportunity elsewhere.

Acacia’s board has appointed its head of organisational effectiveness Peter Geleta as interim CEO, effective January 1, 2018.

Acacia’s finance GM Jaco Maritz has been appointed CFO, also effective January 1, 2018.

“Brad and Andrew have been instrumental in the operational and financial turnaround of Acacia over the past four years and on behalf of the board and the company, I would like to extend our sincere thanks to both of them for their contributions. We wish them all the best for the future.

“We are equally confident that Peter and Jaco will move seamlessly into their new roles. Peter’s demonstrated leadership skills, combined with his all-around abilities and strong experience across all aspects and all levels of the African mining industry will be an important asset for Acacia.

“Jaco’s expertise and long history with the company make him the natural successor for Andrew. The board will continue to provide the management team with our full support as the company focuses on delivering against our operational targets, which remain unchanged from the third-quarter results, while seeking a resolution to the situation in Tanzania,” chairperson Kelvin Dushnisky commented on Thursday.

After months of negotiations, Acacia’s parent company Barrick Gold last month reached an agreement with the Tanzania government to resolve a dispute over the alleged under-declaration, by Acacia, of concentrate exports.

Under the terms of the agreement, Acacia and Tanzania will establish a new operating company to manage the existing Bulyanhulu, Buzwagi and North Mara mines, as well as future operations in the country.

Economic benefits from the three existing mines will be distributed on a 50:50 basis between the new operating company and the government. The government’s share of economic benefits will be delivered in the form of royalties, taxes and a 16% free-carry interest in the Tanzanian operations.

Acacia is also expected to make a one-off $300-million payment to the government to resolve outstanding tax claims.

Acacia had not seen the details of the agreement before Barrick and the Tanzanian government announced that the agreement had been concluded, but said it would consider the proposals once it had been given further information.