Acacia faces Tanzanian roadblock as Barrick bid set to expire – by Niall McGee (Globe and Mail – July 18, 2019)

https://www.theglobeandmail.com/

Acacia Mining PLC is facing a new threat to its African gold-mining operations, as it pushes for a higher takeover offer from parent company Barrick Gold Corp.

In a statement on Wednesday, Acacia said that Tanzania’s environment regulator has ordered it to close the tailings management facility at its North Mara mine by Saturday morning, citing a “failure to contain and prevent seepage.”

The directive threatens to cripple production at the mine, which accounted for about two-thirds of Acacia’s gold output last year. The development isn’t coming entirely out of the blue. In May, Acacia was fined for environmental breaches at North Mara, and in January, Tanzania told Acacia it must completely rebuild and redesign the facility.

Acacia said it has “never received any supporting reports, findings or technical data” from the environmental regulator to back up its allegations.

The imminent shutdown marks a new low in the already poor relationship between Acacia and Tanzania, and puts the company in a weakened state as Toronto-based Barrick circles with a takeover offer.

For the rest of this article: https://www.theglobeandmail.com/business/article-tanzania-orders-acacia-to-close-tailings-management-facility-at-north/