ACACIA MINING SHARES DROP 30% AS TANZANIA ACCUSES GROUP OF UNDER-REPORTING AMOUNT OF METAL IN SHIPMENTS

Shares in Tanzania-focused gold miner Acacia Mining fell 30 percent on Wednesday after the country accused it of under-reporting the amount of metal in its shipments and kept a ban on exports.

The gold miner said an investigation by Tanzania’s presidential committee had found the value of minerals within concentrates in containers at the port city of Dar es Salaam was more than 10 times the declared amount.

The probe determined Acacia had “not fully declared all of the minerals contained in the concentrate and the directive halting the export of metallic mineral concentrates remains in place”, the company said in a statement.

All of London-listed Acacia’s operating mines are in northwest Tanzania and the company says it is the largest foreign direct investor in the country. Acacia has been unable to export since Tanzania issued a ban in March on exports of unprocessed gold and copper concentrate.

“We are seeking a full copy of the report and further clarification,” the company said. “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.”

Analysts said it was increasingly likely Acacia would have to temporarily shut down two of its three mines in the country.

“Halting operations at Bulyanhulu and Buzwagi is a higher probability event now,” analysts said. “As continued stockpiling eats up on working capital and also creates a logistics challenge to get the material out in the event of a resolution.”