Acacia Mining share price dips as it agrees to comply with higher royalties tax in Tanzania mining row

 
Courtney Goldsmith
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Tanzania President John Magufuli has fast-tracked a number of mining bills through parliament (Source: Getty)

Acacia Mining will pay the Tanzanian government an increased royalty rate imposed by new legislation.

The Tanzania-focused miner will pay a six per cent royalty, up from four per cent, on metallic minerals including gold, copper and silver.

Acacia will also continue to pay the recently imposed one per cent clearing fee on exports.

Read more: Acacia's shares tumble after a second report accuses it of hiding exports

Shares in the FTSE 250 company dipped 1.7 per cent to 277.1p in morning trading.

Acacia agreed, "in the interim", to follow the new laws to minimise disruption to its operations.

"Acacia continues to monitor the impact of the new legislation in light of its mineral development agreements with the government of Tanzania. However, to minimise further disruptions to our operations we will, in the interim, satisfy the requirements imposed," the company said in a statement.

Tanzania President John Magufuli announced a raft of new laws for miners on Monday in his push to distribute revenue from the country's minerals to the Tanzanian people.

In addition to the increased royalties tax, the new bills require the government to own at least a 16 per cent stake in mining projects, give the government the right to dissolve or renegotiate contracts and remove the right to international arbitration.

Acacia, which has been embroiled in a dispute with the Tanzania government over a ban on the export of gold and copper concentrates, announced last week it had called for arbitration on behalf of its Bulyanhulu and Buzwagi mines.

Read more: Acacia shares pop as Tanzania agrees to fresh talks

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