Acacia says Tanzania ore export ban costing $1 million in daily revenue

Gold miner Acacia Mining said it was incurring an average daily loss of more than $1 million in revenue at its two mines in Tanzania due to a local government directive banning exports of gold and copper concentrate.

Shares in the company were down as much as 1.6 percent in early morning trade, compared with a marginally lower FTSE mid-cap index.

Tanzania’s energy and minerals ministry imposed a ban earlier this month on sending copper concentrate or mineral sand for processing abroad, putting 30 percent of Acacia’s revenue at risk.

Acacia, majority owned by Barrick Gold, has three gold mines in Tanzania that also produce copper.

Tanzania is Africa’s fourth-largest gold producer and Acacia its largest miner.

Like other African nations, Tanzania is on a drive to add value to its exports rather than send raw materials abroad.

Acacia said its mines continue to operate as normal currently but added that it will reassess how long it can continue to produce as normal if the ban remains in place.

Source: Angola Press News Agency