Acacia denies plans to sell Tanzanian subsidiaries

What you need to know:

  • Acacia, which owns three largest gold mines of Buzwagi, North Mara and Bulyanhulu located along Lake zone, made the revelation yesterday in a statement, stressing that the talks were informal.

Tanzania largest gold mining company, Acacia, has disclosed that it held ‘unofficial’ talks with strategic investors to partner on its investments in the country.

Acacia, which owns three largest gold mines of Buzwagi, North Mara and Bulyanhulu located along Lake zone, made the revelation yesterday in a statement, stressing that the talks were informal.

The statement was issued to respond to the recent international media report which claimed that Acacia was holding talks with strategic investors from China to acquire some of its shares.

Earlier, reports had it that the Shandong Gold, Zijing Mining Group and China National Gold Group had already conducted a due diligence on three Acacia mines in Tanzania, before shares acquisition.

 It says; “The Company is engaging with a small number of potential investors. The process is still at an early stage and there can be no guarantee that an agreement will be reached.”

The statement says Acacia was currently supporting an ongoing negotiation between the Tanzanian government and Barrick Gold Corporation, which owns majority of Acacia shares.

The Financial Times global edition reported recently that Chinese companies including Shandong Gold, Zijing Mining Group and China National Gold Group were on preliminary talks to acquire 50 per cent shares of Acacia projects in Tanzania.

FT reported that Shadong has had relations with Barrick Gold as they acquired 50 per cent of Argentinian veladero Mining company, which is also owned by the Canadian global gold giant.

The permanent secretary, ministry of Minerals Professor Simon Msanjila said the government had no any injunction about any acquisition as long as they follow regulations.

“We are not intending to block the deal if it is conducted in accordance with the law,” said Professor Msanjila.

“Any company wishing to purchase the company shares in Tanzania should expect to carry all debt the company owes,” he added.

The company’s financial statement for the 12 months ending in December last year showed that the company recorded a loss of $700 million with a fall of production in two out of three mines.