Acacia Mining in the dock

TANZANIA’S government accused Acacia Mining of operating illegally in the country and said mining companies have been evading taxes. Acacia’s shares slumped.

“The committee has established that Acacia Mining has been conducting its mining business here in Tanzania contrary to the law,” Nehemiah Osoro, chairperson of a committee ordered by President John Magufuli to conduct an audit of mineral exports over the past 19 years, said yesterday in the commercial capital, Dar es Salaam.

Acacia’s shares dropped as much as 14 percent and were 5.8 percent lower at 282.60 pence (R46.46) by 9.34am in London yesterday. The company, which is majority owned by Barrick Gold Corporation, said that it has “fully co-operated” with the audit committee’s work.