19 Oct Acacia Mining to seek direct dialogue with Tanzania as dispute drags on
Acacia Mining will seek fresh ways of settling a bitter tax dispute with the Tanzanian government that has now moved into its 19 month, with no resolution in sight.
“We will…be reaching out to the government to seek the opportunity for direct dialogue regarding the ongoing disputes between the government, the company and the broader Acacia Group,” said the company in a statement.
The embattled gold miner added that if it failed to negotiate a resolution, it could pursue a claim under a bilateral investment treaty between Tanzania and the United Kingdom.
In a latest twist to proceedings, Tanzanian authorities recently charged three of Acacia’s local subsidiaries, an employee and a former staffer with money laundering and tax evasion.
“Each of the recent charges relate to matters which are subject to or have been introduced into the existing contractual arbitrations with the (government),” said Acacia.
“The company is currently considering its legal position and is concerned about the increasing risks to the safety and security of its people.” On Wednesday, the firm said that all the accused had pleaded not guilty.
Acacia’s Q3 revenue fell 11% on the previous quarter to US$44.6 million, due to a lower gold price and lower output.