International news within the industry of mining and metal, Sep, 22 2017
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Acacia shares fall on plans to reduce operations at Tanzania mine Gold

Williamson Diamond Mine in Mwadui, Tanzania. Photo: Credit: Hansueli Krapf
Williamson Diamond Mine in Mwadui, Tanzania. Photo: Credit: Hansueli Krapf
Published by
Markku Björkman - 07 Sep 2017

Commodities and Mining Editor Acacia Mining, one of the largest gold producers in Africa, has cut production forecasts as it announced plans to reduce operations a key Tanzanian mine that has been hit by a bitter dispute with the government over exports and taxes.

The FTSE 250 company said the decision to cease underground mining at Bulyanhulu over the next month meant it now expected to produce 750,000 ounces of gold this year, down from an earlier estimate of 850,000 to 900,000 ounces.

Acacia, which is 64 per cent owned by Barrick Gold, warned investors in July that it might close Bulyanhulu if negotiations with the government had not been concluded by the end of September.