Acacia's gold production hit by Tanzania's export ban

12th October 2017 By: Reuters

LONDON – London-listed gold miner Acacia Mining reported on Thursday a drop in production over the last three months, hit by work permit issues and reduced operations at its main Tanzanian mines.

Acacia is caught up in a dispute with the Tanzanian government which banned the export of unprocessed minerals and enacted new laws to raise state ownership of the nation's mines.

The company's share price, which is down by 50% so far this year, was down 3% at 184 pence by 08:19, the only decliner in its sector index.

Its gold production in the three months to September fell 8.3% to 191 203 oz compared with the previous quarter although sales were up 3% at 132 787 oz, Acacia said in a brief update.

Sales were hit by the export ban which impacts concentrate at the Bulyanhulu and Buzwagi mines, while North Mara production was lower on work permit issues.

The miner stopped underground work at its flagship Bulyanhulu mine in September in reaction to the export ban and cut its annual production guidance to 750 000 t.

However, Acacia was still well placed to meet its full-year production target as output for the year is so far 620 000 oz, despite the pull-back in output at Bulyanhulu, Investec analysts said in a note.

The company said it was providing a brief update ahead of major shareholder Barrick Gold's third-quarter figures due later on Thursday.