The government of Tanzania has told Acacia Mining to stop using a mining waste facility at one of its gold mines, as a tax dispute between the two drags on.
The Tanzanian National Environment Management Council shut down the facility after the authorities found seepage coming from the site.
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Acacia had failed to “contain and prevent” the seepage, officials claimed.
The firm said it had reached out to the NEMC and the government to ask for clarification before the ban comes into force on Saturday morning.
It has requested copies of investigations or data the ban is based on.
It comes after years of stalemate in a tax dispute between Acacia and Tanzania.
The government, led by President John Magufuli, claims the London-listed gold miner owes it $190bn (£153bn) in back taxes.
It has slapped Acacia with a ban on exporting a gold-bearing ore from a mine in the country.
An international arbitration, brought by the miner, was set to start in the latter half of this month.
However this morning Acacia revealed that it was looking to suspend proceedings as takeover discussions proceed with Barrick Gold.
Barrick, which is Acacia’s largest shareholder, is mulling whether to launch a bid for the remaining shares in the company.
It claims to have reached a deal with Magufuli which can only be signed if the Acacia gets new owners.
The deadline for a bid, which has been extended twice already, is on Friday.