Acacia Mining is preparing to close a loss-making mine after a row over exports with the Tanzanian government escalated.
Shares in the FTSE 250 gold miner plunged nearly 40pc last week after a report by the Tanzanian government accused it of under-representing the amount of gold in the concentrate it exports, potentially depriving the country of millions in royalties.
The government said that Acacia’s gold output was 10 times greater than it claimed – a level that would “make it third-biggest gold miner in the world”, the company said.
We all know the general story from the NGO side. These foreign companies rip off the locals, don’t pay tax etc etc. Try to take much too big a profit margin.
The findings, published with great fanfare on national TV, mean an export ban on gold concentrate imposed at the start of March is likely to continue indefinitely. Acacia is still able to ship out gold bars, which make up 70pc of its output, but estimates that it is losing $1m (£780,000) in revenue every day.
Some observers suggest that Tanzania’s president, John Magufuli, is trying to force Acacia to fund a new gold-smelting industry, but experts say the country’s output is too small for this to be economically viable.
Any why do they demand big margins? Because of fuckwittery like this of course. But I’ll guarantee that if you dig into this you’ll find an NGO or two at the bottom of he claims about not m#paying the due royalties