Acacia Mining plc (LON:ACA) has swallowed tightened new legislation in Tanzania by agreeing to pay extra royalties tax on the exports of gold and other minerals.
Tanzanian President John Magufuli on Monday said he had signed into law new mining bills that were passed by parliament last week.
The bills require the government to own at least a 16% stake in mining projects, give them the power tear up and renegotiate contracts for natural resources, and remove the right to international arbitration. The government has also approved a new Finance Act, which will impose a 1% clearing fee on all minerals exports.
In response to the new laws, Acacia said in a statement today that it will increase the royalty rate paid on minerals to 6% from 4% and suck up the imposed 1% clearing fee on exports.
“Acacia continues to monitor the impact of the new legislation in light of its mineral development agreements with the government of Tanzania,” the miner said.
“However, to minimise further disruptions to our operations we will, in the interim, satisfy the requirements imposed…”
Acacia has previously said it was losing about US$1mln a day in revenue after the government imposed a ban on the exports of gold/ copper concentrate from its two mines in the country.
The government imposed the ban on Acacia because it alleged the miner owed royalties on the exports of gold/ copper concentrate from its two mines in the country. Acacia was accused of under-declaring its gold shipments and mining illegally, claims the mining firm has “strongly refuted”.