THE relationship between Acacia Mining and the Tanzanian government appears to have deteriorated with the company today complaining of “increased levels of pressure” on its employees in the past two days.
In the latest incident an employee described as “senior” and “international” had his passport seized and was detained at Dar-es-Salaam airport as he was trying to leave the country. “Following legal intervention, he was released and his passport has been returned,” said Acacia.
“This incident follows on from increased levels of pressure from Government agencies on Acacia employees in the past 48 hours,” it said. “Acacia is working with our legal advisers and relevant authorities to support our people.”
Acacia is contesting findings by the Tanzania government that it did not declare the full value of concentrate produced at its Bulyanhulu and Buzwagi gold mines over a number of years. “Acacia re-iterates that it operates in full compliance with Tanzanian law, has declared everything of commercial value that we have produced and has paid all appropriate royalties and taxes,” it said again today.
Shares in the company fell 30% at the beginning of the week after the Tanzania delivered a tax assessment that Acacia owed it $180bn in unpaid tax, interest and penalties for the period 2000 to 2017. The company’s share price has since recovered, but this latest news will do little to reassure shareholders, its 64% shareholder Barrick Gold in particular.
Barrick Gold said in its quarter report this week that discussions with the Tanzanian government had started and were progressing. The Tanzanian government has declined to meet directly with Acacia Mining.
Said Acacia: “The company will keep the market regularly informed as to developments as they occur in Tanzania when they are of a sufficient materiality in the context of what has already been disclosed”. The company said last week that it would put Bulyanhulu on care and maintenance if an embargo of its concentrates, in place since March, was not lifted in an effort to preserve cash and keep the company liquid.
