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Acacia Mining Slapped With Shocking $190 Billion Tax Bill In Tanzania

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Acacia Mining Slapped With Shocking $190 Billion Tax Bill In Tanzania

(Kitco News) - Acacia Mining is continuing to struggle in Tanzania, with the government now billing the country’s top gold producer a staggering $190-billion in alleged fines and unpaid taxes from two of its mines.

Tanzania government sent a $40 billion tax bill along with an additional $150 billion in penalties and interest owned, according to a statement released by Acacia on Monday.

The fine allegedly includes under-declared export revenues from Bulyanhulu and Buzwagi mines between 2000 and 2017.

In response, Acacia said that it has been declaring all revenues fully.

“As we have stated previously, Acacia refutes each set of findings and re-iterates that it has fully declared all revenues,” the company said in a press release. “Acacia disputes these assessments. The Company is considering all of its options and rights and will provide a further update in due course.”

Following the news, the company’s stock once again slumped, closing 21% down at 184.5p in London, hitting the lowest since January 2016.

Overall, the stock’s value is down 66% since March, which is when Tanzanian President John Magufuli announced a ban on concentrates exports

Acacia’s problems with the Tanzanian government began last year after the company was accused of tax evasion.

The shocking tax bill of $190 billion is also equal to two centuries worth of the gold producer’s revenue, Bloomberg reported on Monday. To put things into perspective, Acacia’s total reported revenue for 2016 was just $1.05 billion.

Some other incidents this summer included Acacia's North Mara gold mine being taken over by more than 500 residents from nearby villages at least three times in late-June, as they clashed with police in an attempt to steal gold ore. 

At least 66 people were arrested by Tanzanian security forces. More than half of those detained were women, who were reportedly used as human shields, according to Reuters.

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in precious metal products, commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.

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