Tanzania's President John Magufuli has threatened to shut all gold mines in the country if mining companies delay talks to resolve a dispute over billions of dollars in back taxes the government says they owe.
"I have launched an economic war. We have asked them to come for talks, they have agreed to come. But if they delay those talks, I will close down all the mines," Magufuli told the crowd at a public rally in the northwestern town of Kigoma.
Magufuli has sent shock-waves through the mining community in Africa's fourth-largest gold producer since his election late in 2015 with actions he says are aimed at ensuring that mining companies pay a fair share of taxes.
Tanzania has passed new laws to increase mining taxes, to force companies to re-negotiate their contracts and to allow the state to own up to 50 percent of shares in mining companies.
Barrick Gold Corp., which owns a 63.9 percent stake in Acacia, agreed last month to hold talks with the government to resolve the tax evasion claims against Acacia.
The talks are yet to begin but officials said they could start "soon." The president said he had taken on multinational companies for the sake of the country, where mining contributes around 4 percent of the gross domestic product.
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