ACACIA Mining, the UK-listed gold miner currently in a tax-related dispute with the Tanzanian government, said it made a total contribution of $712m to the East African nation’s economy last year which included the purchase of goods and services from Tanzanians worth $434m.
Citing a report by E&A, the auditor, Acacia said this demonstrated “… the significant contribution that Acacia’s three mines – North Mara, Bulyanhulu and Buzwagi – continue to make to Tanzania’s economy as well as the country’s broader social development”.
Goods and services bought represented 67% of Acacia’s total spend on goods and services in 2017. Of this amount, approximately $120m of goods and services were purchased from businesses in the direct locality of the three mines in the country’s Lake Zone, it said.
Acacia is not permitted to export gold concentrate from its Bulyanhulu and Buzwagi mines following two presidential reports which found the company owed the national fiscus tens of billions of dollars in unpaid tax, penalties, and interest. As a result, Acacia has put Bulyanhulu on care and maintenance. North Mara produces doré and continues to export.
The dispute is currently being negotiated between the government and Acacia’s controlling shareholders, the Canadian firm, Barrick Gold.
