Acacia Mining Shares Drop 30% Following Accuse Of Less Declared Minerals Export

April 18, 2023 2:20 pm53 commentsViews: 299

Shares of Acacia Mining fell about 30 percent on Wednesday after accuse from Tanzania government the company has not declared fully about its shipment.

Recently Tanzania banned export of unprocessed gold and copper. Investigation was kicked off to find the minerals are processed in the country before getting exported.

Acacia said the value of minerals within concentrates in Dar es Salaam port containers was over ten times than what was declared earlier.

An updated report from the company is awaited.

Meanwhile, the government has halted the export of metallic mineral concentrates remains of the company.

Earlier, Tanzanian President John Magufuli sacked minister of mines, Sospeter Muhongo, finding wrong doing in the audits.

Analysts meanwhile believe the company would temporarily shut down operations at Bulyanhulu and Buzwagi.

Acacia is a London-based company and 44 percent of its shares are owned by Barrick Gold. It is operating mines in north-west Tanzania.

Magufuli took office 18 months ago promising zero tolerance towards corruption. He had sacked many civil servants for submitting fake documents and hundreds of ghost workers too. He is known as bulldozer by opposite parties due to his strict and bold decisions including restrictions on foreign trips of ministers unless it is very necessary.


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