Sunday , April 14 2024

Tanzania’s export ban dents Acacia’s gold production

Acacia Mining has reported a drop in production over the last three months.

The company has attributed the development to work permit issues and reduced operations at its main Tanzanian mines.

However, Investec analyst are optimistic that Acacia will meet its full-year production target as output for the year is so far 620 000 oz, despite the pull-back in output at Bulyanhulu.

Currently Acacia is caught up in a dispute with the Tanzanian government which banned the export of unprocessed minerals and enacted new laws to raise state ownership of the nation’s mines.

Acacia said sales were hit by the export ban which impacts concentrate at the Bulyanhulu and Buzwagi mines, while North Mara production was lower on work permit issues.

The miner stopped underground work at its flagship Bulyanhulu mine in September in reaction to the export ban and cut its annual production guidance to 750 000 t.

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