ACACIA MINING: WE ARE HERE TO STAY


Few hours after the outcome of a second mineral audit by the Tanzanian government, Acacia Mining has raised its flag  to confirm that it is continuing to operate all three of its mines in Tanzania, namely Bulyanhulu, Buzwagi and North Mara.
Acacia has also confirmed that these mines are all owned and operated by companies that are legally incorporated and registered in Tanzania: Bulyanhulu Gold Mine Limited, Pangea Minerals Limited and North Mara Gold Mine Limited, which are the special mining licence holders for each of the respective mines.
“These companies are indirectly owned by Acacia Mining plc which is a UK incorporated and registered company. This corporate structure is fully transparent, lawful and is disclosed annually in our annual report and accounts which are audited to an international standard in accordance with IFRS and which are publicly available,” the company said in a statement available to Corporate Digest.
According to the statement, the Acacia group holding structure was fully disclosed to the Tanzanian Capital Markets and Securities Authority (CMSA) at the time of Acacia’s cross listing on the Dar es Salaam Stock Exchange in 2011. The group structure formed part of the information memorandum approved by the CMSA for the cross listing.
“Since the cross listing the only change has been the change of Acacia’s name from African Barrick Gold plc to Acacia Mining plc,” the company said.
Acacia has been caught up in President Magufuli's campaign to reform the mining industry, a key source of foreign exchange for the East African country. The sector accounts for about 4 percent of Tanzania's gross domestic product.
Tanzania banned the export of unprocessed ore in March and has pushed for the construction of a local smelter.
"Enough is enough ... we need investors, but not this kind of exploitation. We are supposed to share profits," Magufuli said in a televised address.
According to the report, the investigation found Acacia was not registered to operate in Tanzania and that the country lost up to 108.5 trillion shillings ($49 billion) in revenue from exports of gold and copper concentrates between 1998 and 2017.
The first audit committee, reviewing exports of gold and copper concentrate, said last month it had found 10 times more gold in Acacia's containers than the company had declared as well as undeclared minerals such as iron and sulphur.

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