Tanzanian president orders mining minister to resign

Tanzania formed a presidential committee to investigate ACA's concentrate after the March-ban by the Ministery of Energy and Minerals, limiting exports from ACA's Bulyanhulu and Buzwagi mines.

The report said that Acacia declared about 1.1 tonnes of gold in the containers but an analysis established that the shipment contained up to 15 tonnes.

The impact of the export ban means UK-listed gold miner, Acacia Mining, is losing some $1m in revenue per day - a development that has seen the firm's share tumble.

The president also dissolved the Tanzania Mineral Audit Agency (TMAA) Board of Directors and suspended the agency's Chief Executive Officer, Dominic Rwekaza, for what he termed as negligence.

He's also invited investors to build a smelter in the East African country to process its natural resources.

Acacia said the report by the committee stated that the value of minerals within the concentrates in the company's containers at Dar es Salaam port "is more than 10 times the declared amount". The country is Africa's third-biggest gold producer with companies including AngloGold Ashanti and Acacia Mining extracting the metal, and also produces copper, iron, zinc and diamonds.

The group added: "Acacia re-iterates that it fully declares everything of commercial value that we produce and pay all appropriate royalties and taxes on all of the payable minerals that we produce".

By 0231 GMT, Acacia Mining fell 26 percent to its lowest level in almost one year and on course for its biggest daily since it listed in March 2010. This pains me a lot.

  • Zachary Reyes