leadf
logo-loader
viewAcacia Mining
(
AIM:ACA
)

Acacia Mining sucks up Tanzania government's strict new mining laws, for now...

Acacia Mining said it will "in the interim" satisfy new requirements imposed on miners in Tanzania to "minimise further disruptions" amid a legal dispute with the government

Tanzania
Tanzania's government is raising royalties tax on gold and other minerals

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”.

Quick facts: Acacia Mining

Follow
AIM:ACA

Price: - -

Market Cap: -

Add related topics to MyProactive

Create your account: sign up and get ahead on news and events

NO INVESTMENT ADVICE

The Company is a publisher. You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is...

FOR OUR FULL DISCLAIMER CLICK HERE

Mirriad Advertising half-year top-line results up 27% driven by a stronger...

Mirriad Advertising PLC (AIM:MIRI, FRA:8WQ, OTCQX:MMDDF) CEO Stephan Beringer talks to Proactive about the in-content advertising company's half-year results for the six months ended 30 June 2021. Beringer says revenue increased by 27% to £1.2M driven by its focus on the US, including signing...

1 hour, 53 minutes ago

2 min read