Acacia Mining parent Barrick 'agrees to repay losses' to Tanzania

Acacia Mining's Canadian majority shareholder Barrick Gold has agreed to compensate the government of Tanzania to try and resolve an export dispute that saw the mining group accused of under-declaring its gold shipments and "mining illegally".

After formal talks with Barrick Gold chairman John Thornton on Wednesday, Tanzanian President John Magufuli said Barrick, which owns a 63.9% stake in London-listed Acacia, had "repented" and would "repay all the losses that we as a country incurred".

An earlier press release from the president's office stated that Barrick and the government have agreed to enter into discussions in order to reach a mutually acceptable solution to the issues relating to the ban on the export of gold/copper concentrates as well as the future framework for Acacia’s operations in Tanzania.

"The meeting was constructive and open, with the parties agreeing to enter into negotiations to seek a resolution that is in the best interests of all stakeholders, including Tanzania, Barrick, and Acacia," said Toronto-based Barrick in a statement of its own.

In March Tanzania banned Acacia from exporting gold/copper concentrate, with a presidential inquiry accusing the miner of under-declaring the amount of gold in its mineral sands export containers.

Findings from a second Presidential committee published this Monday upped the ante, alleging the FTSE 250 company was not being properly licensed to operate in the country and that the understating of its exports over several years had meant Acacia avoided "tens of billions of US dollars".

Acacia, which is losing around $1m a month as the ban effects two of its three mines in the country, refuted the allegations as the report's findings were based on those of the earlier investigation in May contained "significant discrepancies compared to the more than 20 years of data".

"Acacia strongly refutes these new unfounded accusations," the miner said on Monday. "We have always conducted our business to the highest standards and operated in full compliance with Tanzanian law."

On Monday the Presidential committee said a large number of containers had been shipped from Tanzania between 1998 and 2017 without being listed and so calculated that the country had lost an average of 108trn shillings (£38bn) and 188trn through gold, copper concentrates export between 1998 to 2017.

Acacia, which saw its own cash in the bank slip to $165m at the end of May from $196m at the end of the first quarter, argued that the findings of the first committee.