Acacia will scale back operations at Tanzanian mine, forcing big job losses
Johannesburg/Bengaluru — Acacia Mining said on Monday it would stop underground work at its flagship Tanzanian gold mine and cut its production guidance in the face of a confrontation between the industry and the government. Shares in the FTSE 250 company plummeted 9% to 188 pence by 10.00am GMT, making it the worst decliner among an index of its peers. Acacia, majority-owned by Barrick Gold, said it would have to scale back operations at Bulyanhulu mine and cut staff as it coped with a government ban on exports of unprocessed ore, imposed in March to encourage the construction of a local smelter. The ban had left a build-up of ore and cut revenue as the firm met taxes and other bills, Acacia said in a statement. "The impact of the ban, in addition to the deterioration of the current operating environment, has led to negative cash flow of approximately $15m a month at the mine and thus has made ordinary course operations at Bulyanhulu unsustainable," it added in a statement. Annual ...
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