LSE-listed Acacia Mining’s Tanzanian operating subsidiaries, Bulyanhulu Gold Mine and Pangea Minerals, plan to seek a stay of their international arbitration with the government of Tanzania.
If the Tanzanian government agrees to the stay, Acacia expects the arbitration hearing to be postponed to provide time for the government to complete its settlement discussions with Acacia’s parent company Barrick Gold.
Barrick in May offered to acquire the remainder of Acacia’s shares for $285-million in shares after the Tanzanian government refused to enter into an agreement directly with Acacia.
Acacia’s operations in Tanzania have been substantially scaled down in recent years amid a standoff with the government over a tax dispute. Acacia, meanwhile, has said the Barrick offer undervalues the company.
Acacia on Wednesday said it would continue to support Barrick’s discussions with the government and that it remained “ready and willing” to engage directly with the government.
Meanwhile, Acacia also announced that the Tanzanian National Environment Management Council (NEMC) had issued its North Mara mine with a prohibition notice, which ordered the North Mara mine to stop using its tailings storage facility (TSF) by 06:00 on July 20.
The NEMC cited the North Mara mine’s failure to contain and prevent seepage from the TSF as grounds for its issuance of the notice, which would remain effective until the NEMC was satisfied that the North Mara mine had taken measures to contain the seepage.
Acacia said it would immediately reach out to the NEMC and the Tanzanian government to seek clarification on the notice and to request copies of any investigation reports or data upon which the notice was based.
The mine was, in May, issued with an environmental protection order and fine for alleged deficiencies at the TSF.
Acacia stressed, however, that the North Mara mine had never received any supporting reports, findings or technical data in relation to those allegations.
The company noted that, as previously disclosed on March 8, the North Mara mine’s technical team had been working constructively and collaboratively with the government to address its concerns regarding alleged breaches of various environmental regulations and alleged discharges from the mine.
“The North Mara mine undertook to manage all seepage through the use of additional pumps and the construction of other containment facilities to return any seepage to the TSF and ensure it is confined to the mine site. All seepage is and will be contained on the site, does not flow into the surrounding environment or present a risk of contamination to any public water source,” Acacia affirmed.
In January, the government issued a directive to the North Mara mine to build a new TSF. The mine started planning and design for a new TSF and has been working with the government to progress the construction of the new facility to support its future mine production plans.