Two top Acacia Mining executives step down as Tanzanian tension bites

Two of Acacia Mining’s (LSE:ACA) top executives have quit the company following the row with the Tanzanian government over gold concentrate exports.

Acacia chief executive officer Brad Gordon and chief financial officer Andrew both notified the company of their resignations but will remain with the company until the year end to ‘ensure a smooth transition’.

The company said in a statement that Gordon will return to Australia for family reasons while Wray is pursuing an opportunity elsewhere.

Acacia has promoted current head of organisational effectiveness Peter Geleta to CEO and Jaco Maritz, Acacia general manager, finance to CFO.

“Brad [Gordon] and Andrew [Wray] have been instrumental in the operational and financial turnaround of Acacia over the past four years and on behalf of the board and the company, I would like to extend our sincere thanks to both of them for their contributions,” said Acacia chairman Kelvin Dushnisky

We wish them all the best for the future. We are equally confident that Peter [Geleta] and Jaco [Moritz] will move seamlessly into their new roles.

“Peter’s demonstrated leadership skills, combined with his all-around abilities and strong experience across all aspects and all levels of the African mining industry will be an important asset for Acacia.

“Jaco’s expertise and long history with the company make him the natural successor for Andrew. The Board will continue to provide the management team with our full support as the company focuses on delivering against our operational targets, which remain unchanged from the Q3 results, while seeking a resolution to the situation in Tanzania.”

The London-listed gold miner has been under pressure from the Tanzanian government since March when the country imposed a ban on gold concentrate exports which affects around of third of Acacia’s production.

Tanzanian president John Magufuli then increased tensions by serving Acacia with a $190 billion tax bill in July.

 

Barrick Gold, which has a 64% interest in Acacia, stepped in to help resolve the situation. Last month it announced that Acacia would pay $300 million and hand the government a 16% stake in three of its gold mines.

@RGNOnline