A publication of draft legislation that recommends changes to the legal framework governing the natural resources sector in Tanzania has been released. This legislation will be debated by the Tanzania Parliament in an extended parliamentary session. In addition, parliament has approved the new Finance Act, which will impose a 1% clearing fee on the value of all minerals exported from the country from July 1.
Acacia Mining, which is currently in a dispute with the government over an export ban, said it would review the proposed changes in the context of its existing agreements.
According to Acacia Mining, the proposed discussions with the government of Tanzania regarding the current concentrate export ban have yet to commence.
Tanzania accused Acacia of evading taxes and said an audit showed the miner had 10 times more gold in containers prepared for export than the company declared.
According to Acacia, the export ban is impacting around 50% of the combined production at Bulyanhulu and Buzwagi operations.
Acacia said the recent First and Second Presidential Committee reports generated “inaccurate and unexplainable findings and allegations.”
The finding of the Second Committee’s report alleged that Acacia has under-declared revenues and tax payments over a number of years by tens of billions of U.S. dollars. As a result, it made a series of recommendations including the payment of outstanding taxes and royalties, renegotiation of large-scale mineral development agreements, government ownership in the mines, and the continuation of the export ban.
“We have always conducted our business to the highest standards and operated in full compliance with Tanzanian law. In addition, our published accounts are annually audited to an international standard in accordance with IFRS,” the company said in a statement.
Acacia has been operating in Tanzania for nearly 20 years with three gold producing mines, Bulyanhulu, Buzwagi and North Mara, all located in the northwest region of the country.
