Based on more than 20 years of data available to Acacia Mining it is impossible to reconcile those findings and they grossly overstate the value of the concentrates by more than 10 times.
The second committee has alleged that Acacia Mining has under-declared revenues and tax payments over a number of years by tens of billions of US dollars.
As a result it has made a series of recommendations including the payment of outstanding taxes and royalties, re-negotiation of large-scale mineral development agreements, government ownership in the mines, and the continuation of the export ban.
Acacia Mining strongly refutes these new unfounded accusations. It maintains it has always conducted its business to the highest standards and operated in full compliance with Tanzanian law.
The company re-iterates that it has declared everything of commercial value that it has produced since it started operating in Tanzania and has paid all appropriate royalties and taxes on all of the payable minerals that it produces.
In addition, Acacia Mining’s published accounts are annually audited to an international standard in accordance with IFRS.
The company has long sought to be a partner with the Government of Tanzania as it believes that they have similar goals in enhancing social and economic development in the country.
However, it believes this partnership must be based on fairness for all stakeholders, including the 96% of Acacia Mining employees at its mines who are Tanzanian, and its shareholders who have funded the US$4 billion of investment that Acacia Mining has made into the country to date.
Acacia Mining has confirmed that it is continuing to operate all three of its mines in Tanzania, namely Bulyanhulu, Buzwagi and North Mara.
It also confirms that these mines are all owned and operated by companies that are legally incorporated and registered in Tanzania: Bulyanhulu Gold Mine Limited, Pangea Minerals Limited and North Mara Gold Mine Limited, which are the special mining licence holders for each of the respective mines.
These companies are indirectly owned by Acacia Mining plc which is a UK incorporated and registered company. This corporate structure is fully transparent, lawful and is disclosed annually in its annual report and accounts which are audited to an international standard in accordance with IFRS and which are publicly available.
The Acacia group holding structure was fully disclosed to the Tanzanian Capital Markets and Securities Authority (CMSA) at the time of Acacia’s cross listing on the Dar es Salaam Stock Exchange in 2011.
The group structure formed part of the information memorandum approved by the CMSA for the cross listing. Since the cross listing the only change has been the change of Acacia’s name from African Barrick Gold plc to Acacia Mining plc.
In addition, and in order to provide clear and factual information around the current situation, Acacia Mining has created a micro-site: https://www.acaciamining.com/export-ban-facts.aspx, which has background to the current situation, clarification around the allegations, and details of its contribution to the Tanzanian economy.
Feature image credit: Acacia Mining
(The Bulyanhulu gold mine in Tanzania is one of three mines owned by Acacia Mining)