Acacia Mining share price rises after revealing it is "hopeful" of an agreement with the Tanzanian government over its export ban

Oliver Gill
Follow Oliver
Copper Export
Copper is exported from the Tanzanian port of Dar es Salaam (Source: Getty)

Acacia Mining shares nosed up this morning after the Tanzanian miner said it was "hopeful" over coming to an agreement on an export ban that is costing the firm $1m (£0.8m) a day.

The FTSE 250 firm said it has co-operated with a secondary investigation by Tanzanian authorities into claims it hid the levels of gold and copper it is exporting from the country.

Shares rose around three per cent in early trading.

A initial government investigation, published on 24 May, alleged wrongdoing by Acacia and sent shares sprawling. Over a quarter was wiped off the firm's market cap in the wake of the news.

Read more: Acacia Mining shares crash after Tanzania report alleges wrongdoing

Formerly known as African Barrick Gold, Acacia was banned from exporting both gold and copper by the Tanzanian government in March. Authorities launched an investigation as the government wants to ensure raw material extracted is processed in the east African country.

In today's announcement to the stockmarket Acacia said: "We believe that the second committee is close to completing its work, following which we would welcome the opportunity to discuss the findings directly with the government.

We remain hopeful that we will be able to reach a resolution to the current situation with the government so that we can continue to deliver strong performance from our mines for the benefit of all stakeholders.

Read more: Acacia's shares have fallen after it called off merger talks with Endeavour

Acacia said its mines were operating as normal and was stockpiling gold and copper concentrate. It admitted there had been "some impact on productivity levels" as a result of the export ban, but said these were not sufficient for Acacia to adjust forecasts.

The miner said it was taking steps "to minimise further cash outflows from the business".

Related articles