Acacia Mining reduced gold production by 7% in 2017
The largest gold mining company from Tanzania reported a financial result for 2017, reflecting $707 million dead loss. The company was forced to reduce gold production by 7% to 767 thousands ounces in 2017 due to the Tanzanian government's ban on metallurgical concentrates exports. As a result, Acacia Mining's revenue fell 29% to $ 752 million, because only 10% of the total volume of concentrate produced was sold.
Given the large volume of reserves and changes in the Tanzania mining legal regulations the company plans to reduce production to 435-475 thousand ounces. This is more than ½ times less than production in 2017.
Acacia Mining is a subsidiary of African Barrick Gold the world leader in gold mining and also it is a largest gold producer in Tanzania. In early 2017, the Tanzanian authorities accused company in hiding a real amount of the concentrate being shipped. The company reduced declared amount in ten times to avoid taxes. As a result, the ban on the copper and gold concentrates export from Tanzania was extended, and Acacia Mining was ordered to pay taxes at a higher rate. In October 2017, African Barrick Gold promised to pay $ 300 million to the Tanzanian budget in order to settle the differences that led to the export of raw concentrates ban.