25 Jul Acacia hit with enormous $190 billion bill by Tanzanian government
Acacia Mining’s (LSE:ACA) long-running dispute with Tanzania continues to rumble on with the government now slapping a massive US$190 billion bill on the besieged company.
The Tanzanian government sent a $40 billion tax bill, followed by an additional $150 billion in penalties and interest owed, relating to alleged under-declared export revenues from between 2000 and 2017.
In a press release, the gold-focused miner said: “As we have stated previously, Acacia refutes each set of findings and re-iterates that it has fully declared all revenues.
“The company is considering all of its options and rights and will provide a further update in due course.”
However, Acacia’s stock price has already taken a battering in light of the charges, closing 21% down at 184.5p in London, the company’s lowest share price since January 2016.
In addition, the firm’s overall stock value is down 66% since March, when Tanzanian President John Magufuli announced a nationwide ban on concentrate exports.
The astounding tax bill is equal to two centuries worth of Acacia’s revenue, and is more than the combined market values of mining giants BHP, Rio Tinto and Anglo American.