The Tanzanian government is demanding Sh19.74 trillion (US$190 billion) from Acacia Mining in unpaid taxes, penalties and interests.
However, the global gold minor terms the demand “inaccurate and unexplainable.” “Acacia refutes each set of findings and re-iterates that it has fully declared all revenues,” it said.
The company has previously said it is a law- abiding company that has always declared all materials it has produced and paid all royalties and taxes that are due. This is after Tanzania issued a ban on the gold and copper concentrates.
“Under our agreements with the Tanzanian Government, our mines are permitted to sell their fully declared gold/copper concentrate products to overseas customers and to export the concentrates in containers, and they are in full compliance with the agreements and our export permits,” it said.
However, Tanzania imposed an export ban has been imposed on gold/copper concentrate exports in March, which the miner says has impacted around 50% of our combined production at Bulyanhulu and Buzwagi.
The company wants an independent review of two presidential committee reports that led to the ban.
“Acacia strongly refutes these unfounded accusations. We have always conducted our business to the highest standards and operated in full compliance with Tanzanian law. In addition, our published accounts are annually audited to an international standard in accordance with IFRS,” the statement posted on its website reads.
Acacia has been operating in Tanzania for nearly 20 years with three gold producing mines, Bulyanhulu, Buzwagi and North Mara, all located in the north-west region of the country.
During that time, Acacia says it has contributed significantly to the national and local economy, establishing itself as the largest investor and employer in Tanzania.
“The continuation of the export ban will not only hurt Acacia’s ability to conduct future business in the country, but will directly and negatively affect the lives of thousands of Tanzanians. The security of the 36,200 indirect and induced jobs that rely on Acacia’s mining operations, as well as the company’s ability to invest in education, infrastructure and health projects will all be under threat,” it says.
“As a company, we are and always have been committed to acting responsibly towards the people of Tanzania, their environment and their communities. This sits at the heart of our culture as a foreign company investing in Tanzania. Foreign investment and the private sector plays an important role in the economic advancement of Tanzania and we ask that the people of Tanzania’s economic future is not put at risk,” Acacia adds.
Acacia on June 16 announced that Barrick, which holds a 63.9 percent equity interest in the company, and the Government of Tanzania agreed to enter into discussions in order to reach a mutually acceptable solution to the issues relating to the ban on the export of gold/copper concentrates as well as the future framework for Acacia’s operations in Tanzania.
However, Tanzanian the Parliament has approved the new Finance Act, which will impose a 1% clearing fee on the value of all minerals exported from the country from July 1, 2017.
“New legislation was also urgently passed by the Parliament in Tanzania on July 3, 2017 completely altering the legal and regulatory regime that had attracted FDI in the entire resources sector to date,” the company says on its website.
Acacia is now seeking arbitration to the dispute that arose following the coming into power of President John Magufuli.
There have been reports that foreign staff have been asked to leave the country.
In Kenya, the company is engaged in gold mining in the western region. In February, it announced the discovery of a “multi-million ounce” gold stream.
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