A ban on gold and copper concentrate export from Tanzania is costing Gold miner Acacia Mining more than $1million a day in lost revenues, and the company may soon unable to continue normal production, it said today
Tanzania's energy and minerals ministry imposed a ban earlier this month on sending copper concentrate or mineral sand for processing abroad, putting 30 percent of Acacia's revenue at risk.
Acacia, majority owned by Barrick Gold, has three gold mines in Tanzania that also produce copper.
Tanzania is Africa's fourth-largest gold producer and Acacia its largest miner. Like other African nations, Tanzania is on a drive to add value to its exports rather than send raw materials abroad.
Acacia said its mines continue to operate as normal currently but added that it will reassess how long it can continue to produce as normal if the ban remains in place.
Tanzania’s ostensible motive for banning copper and gold concentrate exports is to help it develop a domestic smelting industry, as all such products are currently shipped abroad for processing. However previous studies have suggested that such an industry would struggle to compete with rival countries, while experts believe it could take a minimum of five years to build the necessary infrastructure.
Acacia said it had offered to help the government with a new study to assess the potential for building a smelter in Tanzania to process its concentrate.
In the meantime its mines continue to operate and stockpile concentrate, although it warned that it could not produce indefinitely. “During April we will reassess how long we can continue to produce as normal if the ban remains in place and what other measures may be necessary,” the company said.
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