Dar es Salaam. Acacia
Mining Plc reiterated on Thursday that it was still discussing with Chinese
investors for a possible investment deal in one or more of the firm’s mines in
Tanzania.
The company, which
operates North Mara, Buzwagi and Bulyanhulu gold mines in Tanzania, is
reportedly negotiating with China’s Shandong Gold Mining Co Ltd, Zijin Mining
Group Co Ltd and with state-owned China National Gold Group for a possible
joint venture.
“As previously
announced, in response to a number of expressions of potential interest from
Chinese counterparties, the Company is engaging with a small number of
potential investors to explore the value to the Company of the sale of a stake
in one or more of its Tanzanian assets,” Acacia said yesterday.
Acacia Mining Plc said
in its unaudited financial results for the first quarter of the current
calendar year that so far, there was no certainty as to whether any agreement
would be reached with any of the potential investors.
It said however that
any decision reached will take into consideration the interests of its
shareholders.
“Acacia remains
committed to shareholder value and evaluates all opportunities against strict
strategic and financial criteria. Any transaction will be pursued only if it is
determined by Acacia’s Board to be in the best interests of all shareholders,”
the statement reads.
A subsidiary of
Barrick, Acacia said it would continue to support its parent firm in its
discussions with President John Magufuli’s administration as the two parties
work towards identifying a possible negotiated resolution.
The discussions seek
to resolve both the government’s export ban on concentrates and the tax
dispute. In the endeavor to resolve the tax dispute, Barrick struck a deal with
the government in October last year (2017) that would see Acacia paying $300
million to the government, hand over a 16 per cent stake in its mines and split
‘economic benefits’ from operations.
But Acacia said in the
statement that it awaits a detailed agreed proposal and documented final agreements
for a comprehensive settlement in the coming months.
While sticking to its
full-year targets of producing gold output of between 435,000-475,000 ounces,
Acacia’s earnings during the first quarter were 49.4 per cent lower than during
a similar period last year, largely due to reduced operations at Bulyanhulu
Mine amid a tax dispute with the government.
At Bulyanhulu, the
company says, gold production reached only of 8,527 ounces, being 87 per cent
lower than what was produced during the first quarter of 2017.
This was mainly due to
the decision to place the underground mine on reduced operations.
At North Mara and
Buzwagi, gold production was down by 20 per cent and 40 per cent respectively
compared to a similar period last year.
The Citizen
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