ABN - Tanzania’s recent ban on mining exports has resulted in a decrease in gold sales registered by Acacia Mining (LSE:ACA), during Q1 of 2017.
Last month, President Magufuli announced a ban on gold and copper concentrate exports, which affected Acacia’s Bulyanhulu and Buzwagi mines.
Consequently, gold sales in Q1 of 2017 fell by almost 35,000 ounces to 184,744 ounces, compared to the amount sold in Q4 of 2016.
Acacia’s chief executive officer Brad Gordon said: "We continue to engage with the Tanzanian government in order to be able to resume the export of gold/copper concentrate."
However, the Africa-focused miner did report a comparable quarterly rise in gold production in the financial report, producing 219,670 ounces of gold throughout Q1 of 2017, a 15% rise on the amount produced in Q1 of 2016.
The company’s earnings also jumped up by 25% to US$82 million, while net earnings equated to $27 million, compared to a $52 million loss recorded in Q1 of 2016.
Acacia holds additional assets in Kenya, Burkina Faso and Mali, along with its flagship operations across Tanzania.