Acacia Mining understands that this legislation is to be debated by the Tanzanian Parliament in an extended parliamentary session.
In addition, 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 the 1st July 2017.
Acacia Mining will review the proposed changes in the context of its existing agreements and will provide further updates as appropriate.
Separately, Acacia Mining also notes that the proposed discussions with the Government of Tanzania regarding the current concentrate export ban have yet to commence.
This follows Acacia Mining disputing the findings of the presidential second committee’s report as they are primarily based on the first committee’s findings.
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.
The company 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.
Feature image credit: Acacia Mining