Acacia paid $184m in taxes to governments in 2016

30th June 2017

By: Megan van Wyngaardt

Creamer Media Contributing Editor Online

     

Font size: - +

JOHANNESBURG (miningweekly.com) – Gold miner Acacia Mining paid $184-million in 2016 to the governments of countries where it operates.

Of this, the Tanzanian government received $88.11-million in income tax and royalties. When payroll-related and other taxes are included, this figure amounts to $165-million.

“As the home to our three operating mines, Tanzania receives the majority of our contribution to governments and we invest around 80% of our revenues back into the country.

“However, over the past few years, we have also expanded our business beyond Tanzania, with active exploration programmes . . . taking place across Kenya, Burkina Faso and Mali,” CFO Andrew Wray said in a report released on Friday.

He added that, together with the increase in royalties and the other taxes it pays, the miner’s contribution to Tanzania had increased by 39% year-on-year.

Acacia and the Tanzanian government are currently in a dispute over back taxes. The Tanzanian government has accused the gold miner of failing to pay billions of dollars in taxes, after two Presidential committees determined that the company  underdeclared its mineral exports.

Acacia, however, believes the committees  overstated the value of concentrates it had exported.

Reuters on Thursday reported that the Tanzanian government  submitted three new Bills to Parliament that would enable it to force mining and energy companies to renegotiate their contracts with  government. This follows after one of the Presidential committees had called for an overhaul of the country’s mining code.

Edited by Chanel de Bruyn
Creamer Media Senior Deputy Editor Online

Comments

The content you are trying to access is only available to subscribers.

If you are already a subscriber, you can Login Here.

If you are not a subscriber, you can subscribe now, by selecting one of the below options.

For more information or assistance, please contact us at subscriptions@creamermedia.co.za.

Option 1 (equivalent of R125 a month):

Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format

Option 2 (equivalent of R375 a month):

All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.

Already a subscriber?

Forgotten your password?

MAGAZINE & ONLINE

SUBSCRIBE

RESEARCH CHANNEL AFRICA

SUBSCRIBE

CORPORATE PACKAGES

CLICK FOR A QUOTATION