Acacia seeks stay in Tanzania arbitration case as govt shuts tailings facility

Acacia Mining on Wednesday said it was seeking a stay of international arbitration over a dispute with Tanzania just days before a takeover offer deadline from majority shareholder Barrick Gold.

Arbitration was due to start on Monday over the Tanzania's demand for $190bn in unpaid taxes, but Acacia said it wanted to provide time for the government to complete settlement discussions with Barrick.

Pressure on Acacia was increased on Wednesday when the government ordered it to stop using tailing storage facility (TSF) at its North Mara mine, citing a failure to contain and prevent seepage.

The company said it had been issued with an Environmental Protection Order and fined in May 2019 for alleged deficiencies at the TSF.

“However, the North Mara mine has never received any supporting reports, findings or technical data in relation to these allegations,” the company said.

The Tanzanian government on Friday said it would inspect the mine. Acacia's gold exports were banned two years ago over the tax dispute.

Barrick, which holds 64% of Acacia, has until Friday to make an offer and claims the takeover is the only way to resolve the dispute as the government refuses to deal with Acacia.

However, Acacia’s shareholders accuse Barrick of using the issue as a way to to pick up the company on the cheap.

“Acacia will continue to support those discussions and remains ready and willing to engage directly with the government of Tanzania,” the company said.