A THIRD employee of Acacia Mining has been charged by Tanzanian authorities in connection with charges ranging from fraud and money laundering to tax evasion, said the UK-listed company in an announcement today.
The employee, who is a Tanzanian national, has not been bailed in terms of the Tanzanian Anti-Money Laundering Act, it added.
Acacia said last week that it would “reach out” to the Tanzanian government even though it had been excluded from negotiations between it and Barrick Gold, Acacia’s largest shareholder with a 64% stake. The negotiations relate to claims Acacia owes the Tanzanian government billions of dollars in unpaid tax, penalties, and interest.
Acacia added, today, that it had not received any update regarding progress in the negotiations. Nor did it provide details of its plans to speak directly to the government. The negotiations kicked off about a year ago.
“Acacia is deeply concerned about the increasing risks to the safety and security of its people given the criminal charges being brought by the Government of Tanzania (GoT),” it said in its statement. “The company believes that these recent actions represent a significant escalation of governmental pressure,” it added.
“As previously advised, Barrick has not yet provided to the company a proposal for a comprehensive resolution of the disputes that Barrick has been able to agree in principle with the GoT, despite their direct discussions since announcements were made in October 2017,” it said.
Acacia said in its third quarter results presentation last week that it had rebuilt its net cash position to $74m, an increase of $65m for the year to date. The company forecast production of more than 500,000 ounces for the year which compares favourably with the 435,000 and 475,000 oz previous outlook
Net earnings came in at $11.9m, equal to 2.9 US cents per share which were 26% down on the $16.0m or 3.9c/share) booked in the third quarter of the 2017 financial year.
In light of “… the increasingly challenging operating environment”, Acacia would “… be reaching out directly to the government to seek the opportunity for direct dialogue regarding our ongoing disputes”, said Peter Geleta, interim CEO of Acacia in notes to the firm’s third quarter figures.
But he also alluded to upping the legal ante on Tanzania commenting that his company would “… inform the Government that failing a negotiated resolution the company may need to pursue claims under the bilateral investment treaty between the United Republic of Tanzania and the United Kingdom”.
