Acacia’s shares fall as Tanzania committee says it under-declared concentrate exports

JOHANNESBURG (miningweekly.com) – Acacia Mining’s share price on the LSE fell by more than 20% on Wednesday after it reported that a Tanzanian Presidential Committee that was set up to investigate if mining companies are paying their fair share of taxes, had found that the gold miner had not fully declared all minerals contained in concentrate.

Tanzania President John Magufuli on Wednesday released a report compiled by the committee, which was set up late in March and comprised academics and industry professionals, and announced that the directive halting the export of metallic mineral concentrates remains in place.

Acacia, which earlier said it had fully cooperated with the committee’s work, said it had not yet seen the full report, but noted that the report stated that the value of minerals contained within the concentrates in the containers currently at the Dar es Salaam port was more than ten times the declared amount.

“We are seeking a full copy of the report and further clarification. Acacia reiterates that it fully declares everything of commercial value that we produce and pay all appropriate royalties and taxes on all of the payable minerals that we produce,” the company stated.

The Tanzania Ministry of Energy and Minerals on March 2 banned the export of gold, copper, nickel and silver concentrates in an effort to encourage local beneficiation. This was followed on March 29, with the establishment of the Presidential Committee to undertake an audit into mining companies’ tax payments.

Acacia reported at the time that the ban was costing it some $1-million a day in lost revenue.

Reuters reported on Wednesday that the President had also fired Mining Minister Sospeter Muhongo and another government official over the committee’s findings that mining companies were under-declaring the value of their exports.