14 Jul Acacia agrees to comply with new revenue taxes in Tanzania
Acacia Mining (LSE:ACA) has agreed to pay new tax surcharges in Tanzania, in the latest development of a long-standing dispute with the East African country.
The Africa-focused miner will now pay a 6% royalty rate on gold sales, up from 4% after Tanzania’s President John Magufuli drafted in a number of new mining laws through the national parliament.
“Acacia continues to monitor the impact of the new legislation in light of its mineral development agreements with the government of Tanzania, said the company in a statement.
“However, to minimise further disruptions to our operations we will, in the interim, satisfy the requirements imposed.”
Initial estimates of the extra cost placed on Acacia after the tax raise are around $US31 million a year, based on the company’s 2016 revenue of $1 billion.
Acacia has been at loggerheads with the Tanzanian authorities since March, when the government accused it of under-reporting its concentrate exports, resulting in a country-wide ban of gold exports.