Acacia Mining (LSE: ACA), Tanzania’s largest gold producer, resumed the export of gold from its North Mara mine following the recent authorization from the Mining Commission of the Tanzanian Ministry of Minerals.
Following the sale of this gold, the company will be able to meet its financial obligations for an extended period of time.
However, since the Prohibition Notice issued by the Tanzanian National Environment Management Council came into effect, which ordered the North Mara Gold Mine to stop the use of its Tailings Storage Facility on 20 July 2019, all gold production at the processing plant at North Mara has been forced to cease.
Production at the plant will not resume until the Notice is lifted. Mining activities at the North Mara Gold Mine remain unaffected for the time being with mined ore being added to stockpiles while a resolution is sought with respect to the Notice.
Acacia Mining is currently in a raw with the Government of Tanzania (GoT) after a presidential committee found in May 2017 that the company allegedly under-declared its exports and eventually presented it with a demand for USD 190 billion in unpaid taxes.
The gold miner has always refuted the accusation and has been since in talks with the Government of Tanzania for a resolution.