Acacia Mining reports 'increased pressure' from Tanzania government

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Sharecast News | 28 Jul, 2017

17:17 17/09/19

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A senior Acacia Mining staff member was detained and their passport seized by the Tanzanian authorities, with the London-listed company reporting "increased levels of pressure" from the government on its employees amid a dispute over exports and taxes.

Acacia, which on Monday was hit with a gigantic $190bn bill from the Tanzanian Revenue Authority for alleged unpaid taxes and penalties, said on Friday that a "senior international employee" of its wholly owned subsidiary Pangea Minerals Limited, which owns its Buzwagi mine in the country, had been detained at the Dar-es-Salaam airport before later being released and his passport returned after "legal intervention".

"This incident follows on from increased levels of pressure from government agencies on Acacia employees in the past 48 hours. Acacia is working with our legal advisers and relevant authorities to support our people," the FTSE 250 company said in a statement later in the day.

The company insisted it continues to operate "in full compliance with Tanzanian law, has declared everything of commercial value that we have produced and has paid all appropriate royalties and taxes".

Acacia has disputed and refuted these government's allegations and tax assessments, which included a bill for $40bn unpaid tax and $150bn for penalties and interest owed, and said it "is considering all of its options and rights", having already referred the allegations to international arbitration.

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