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Acacia disappointed by 2nd Presidential Committee findings

12 June 2017 13:13

Acacia Mining said it has noted the disappointing findings of the Presidential Second Committee's report which were presented to the President of Tanzania H.E. Dr. John P. Magufuli this morning and which considered the historical economic and legal aspects of the export of metallic mineral concentrates.

The Company confirmed that the Second Committee has primarily based its findings on those of the First Presidential Committee, announced on 24 May 2017, that Acacia strongly refutes.

It said that the Committee based its findings on samples from 44 containers. Based on more than 20 years of data available to us it is impossible to reconcile those findings and they grossly overstate the value of the concentrates by more than 10 times.

The Company commented:

"The Second Committee has alleged that Acacia has under-declared revenues and tax payments over a number of years by tens of billions of US dollars. As a result it has made a series of recommendations including the payment of outstanding taxes and royalties, re-negotiation of large-scale Mineral Development Agreements, Government ownership in the mines, and the continuation of the export ban.

"Acacia strongly refutes these new unfounded accusations. We have always conducted our business to the highest standards and operated in full compliance with Tanzanian law. We re-iterate that we have declared everything of commercial value that we have produced since we started operating in Tanzania and have paid all appropriate royalties and taxes on all of the payable minerals that we produce. In addition, our published accounts are annually audited to an international standard in accordance with IFRS.

"Acacia has long sought to be a partner with the Government of Tanzania as we believe that we have similar goals in enhancing social and economic development in the country. However, this partnership must be based on fairness for all stakeholders, including the 96% of our employees at our mines who are Tanzanian, and our shareholders who have funded the US$4 billion of investment that Acacia has made into the country to date.

"Acacia remains open to further dialogue with the Government regarding this issue and continues to assess all of its options. We will provide a further update to the market as soon as practical."

At 1:13pm: (LON:ACA) Acacia Mining Plc share price was -27.3p at 272.8p

Story provided by StockMarketWire.com

Related Company: ACA

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