Acacia agrees to pay higher royalties to Tanzania

Saturday July 15 2017

A mining area in Tanzania. The new royalty fees are just one of the measures put in place by amendments to the country’s mineral law. PHOTO | FILE

A mining area in Tanzania. The new royalty fees are just one of the measures put in place by amendments to the country’s mineral law. PHOTO | FILE 

By VICTOR KIPROP
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Acacia Mining has agreed to pay the higher royalties imposed by Tanzania this month, even as the company disputes with the government the value of its mineral exports.

The UK-listed miner said it would now pay a six per cent royalty, up from four per cent, on gold, copper and silver, as well as the new one per cent clearing fee that was recently imposed by the country’s mineral law, which was recently revised.

“To minimise further disruptions of our operations we will, in the interim, satisfy the requirements of the new legislation governing the natural resources sector as regards the increased royalty rate applicable to metallic minerals such as gold, copper and silver of six per cent in addition to the recently imposed one per cent clearing fee on exports,” the company said in a statement posted on its website.

Acacia has been embroiled in a dispute with the Tanzania government over a ban on the export of gold and copper concentrates. President John Magufuli signed the three new mining laws last week.

In addition to the increased royalties, the new laws require the governmen