Acacia fined for environmental breaches in Tanzania amid ongoing spat

Acacia Mining has been hit with a 300m Tanzanian shilling fine (£102,000) two days after the country appointed a new mining minister.

Authorities demanded payment after the FTSE 250 listed company allegedly broke environmental laws.

However, Acacia said it had not received any details to support the allegations.

The fairly small fine pales into insignificance next to the $190bn (£149bn) which Tanzania claims Acacia owes in back tax.

The ongoing spat between the two parties has limited the Barrick Gold-owned miner’s ability to operate in Tanzania, a vital market.

Barrick is reportedly making progress in discussions with President John Magufuli’s regime, however a final deal is yet to be announced.

Last month the company’s shares dropped after a report in the Wall Street Journal that Britain’s Serious Fraud Office was looking into Acacia’s activities.

Acacia said it “is not aware that the SFO is investigating the company. However, Acacia has been in contact with the SFO about the allegations of corrupt activities in Tanzania which are the subject of proceedings in Tanzania.”

Several Acacia employees were charged with tax evasion and money laundering in Tanzania last year.