Tanzania export ban costing Acacia $1m a day

Acacia Mining has revealed that Tanzania’s ban on the export of gold/copper concentrate was costing the company $1m per day.

Acacia said it had been engaging with key government officials and other stakeholders since the ban was announced on 3 March in an attempt to have the directive lifted but there had not yet been any change in the situation.

An update said: “Acacia is a long term investor in Tanzania and we are fully committed to supporting local businesses.

“To this end we have offered to support and partner with the government in a new study by third party experts to assess the economic potential of building of a smelter in Tanzania capable of processing our concentrate.

“At Bulyanhulu and Buzwagi the combined direct impact of the current directive is the average daily loss of revenues of more than US$1 million per day.

“We are taking a range of actions to help manage this financial impact, whilst ensuring we continue to safely operate the mines.”

The company said the mines were continuing to operate as normal and as a minimum had sufficient capacity to be able to place gold/copper concentrate into containers on site beyond the end of April.

“However, prior to reaching this point, during April we will reassess how long we can continue to produce as normal if the ban remains in place and what other measures may be necessary.

“Up to that point we will focus on engaging with the relevant authorities in Tanzania with a view to resolving the stoppage of the export of gold/copper concentrate and other related issues as soon as possible.”

At 9:20am: (LON:ACA) Acacia Mining Plc share price was -5.5p at 458.7p

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