Acacia Mining replaces CEO and CFO as Tanzania dispute rankles

Acacia Mining's chief executive Brad Gordon and chief financial officer Andrew Wray have both jumped ship just days after the miner's parent company caved in to the Tanzanian government in the midst of a months-long dispute over gold exports.

Both Gordon and Wray will remain with the company until the end of the year to ensure a smooth transition to two replacement, both of which worked at Acacia's 64% owner Barrick Gold before it created the London-listed company out of its Tanzanian gold assets.

Peter Geleta, hitherto Acacia’s head of organisational effectiveness and a former executive at Canada-based Barrick Gold, has been appointed as interim chief executive officer from 1 January, while finance general manager Jaco Maritz has been promoted to chief financial officer from the same date.

Chairman Kelvin Dushnisky said: "Brad and Andrew have been instrumental in the operational and financial turnaround of Acacia over the past four years and on behalf of the board and the company."

"We are equally confident that Peter and Jaco will move seamlessly into their new roles. Peter’s demonstrated leadership skills, combined with his all-around abilities and strong experience across all aspects and all levels of the African mining industry will be an important asset for Acacia.

"Jaco’s expertise and long history with the company make him the natural successor for Andrew. The board will continue to provide the management team with our full support as the company focuses on delivering against our operational targets, which remain unchanged from the Q3 results, while seeking a resolution to the situation in Tanzania.”

Last month Barrick shook hands with Tanzania's minister for justice and constitutional affairs, Palamagamba Kabudi, on a framework agreement to resolve a dispute with Acacia over the export of gold and copper concentrates, which the east African country said had been under-declared for many years.

The proposal is subject to review and approval by Acacia but its Canadian parent said it believed the deal was the "optimal path" for the resumption of normal operations.

Acacia Mining was spun out of Barrick in 2010 as African Barrick Gold with three mines in Tanzania -- Bulyanhulu, Buzwagi and North Mara -- which the Canadia company had acquired in 1999, 2000 and 2006 respectively.

Several analysts have questioned whether the agreement is fair from Acacia's and its smaller shareholders' perspective.

Yuen Low at broker Shore Capital called for Acacia to "proceed with arbitration in the interests of justice and precedent" as the investigations and assessments on which Tanzania was basing its claims were "patently dubious" if not "ludicrously ridonculous".

Jonathan Guy at Numis said the agreement was "inequitable" from the perspective of minority shareholders and was "something of an exercise in buck passing on behalf of Barrick who, in our view, bear a substantial portion of the burden of responsibility for the poor state of relations with the government, having operated the mines previously and put in place many of the agreements with the Tanzanian government".

Guy said he found it hard to recommend shareholders back Barrick's accord and felt Acacia should continue with arbitration.