Acacia Mining has reported a 15 percent rise in its first-quarter gold production despite a ban on gold and copper concentrates exports by the government of Tanzania.
The government halted the export of unprocessed ore on March 3, following President John Magufuli's call for the construction of more gold smelters in the country, Africa's fourth-largest gold producer.
Gold output for the quarter was 219,670 ounces but sales were lower by 34,926 ounces due to the ban, Acacia said in a statement.
However, Tanzania's biggest gold producer stuck to its full-year production targets, as its mines continue to operate normally while negotiations continue with the government.
Acacia said in February it expects production this year to be between 850,000-900,000 ounces, up from about 830,000 ounces last year.
The export ban reduced cashflow by about $33 million for the quarter and affects sales from two of its three mines, the company said.
Meanwhile Acacia is waiting for the Tanzanian tax authority to resume VAT rebates it halted six months ago while it probed local suppliers. The miner is owed $28m in payments for the first quarter alone.
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